Cost Leadership
Shop for Cost leadership business strategy books. Get Cost Leadership essential facts below. View Videos, Research or join the Cost Leadership discussion. Add Cost Leadership to your Like2do.com topic list for future reference or share this resource on social media.
Cost Leadership

In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry.[1] Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve). A cost leadership strategy aims to exploit scale of production, well-defined scope and other economies (e.g., a good purchasing approach), producing highly standardized products, using advanced technology.[2] In recent years, more and more companies have chosen a strategic mix to achieve market leadership. These patterns consist of simultaneous cost leadership, superior customer service and product leadership.[3]

Cost leadership is different from price leadership. A company could be the lowest cost producer yet not offer the lowest-priced products or services. If so, that company would have a higher than average profitability. However, cost leader companies do compete on price and are very effective at such a form of competition, having a low cost structure and management.[1]

The concept of cost leadership was developed by Michael Porter.

References

  1. ^ a b Michael J. Stahl, David W. Grigsby. "Strategic Management". Blackwell Publishing, 1997 ISBN 1-55786-650-3, 978-1-55786-650-9. 
  2. ^ Gavin C. Reid. "Small Business Enterprise: An Economic Analysis". Published by Routledge, 1993, ISBN 0-415-05681-0, 978-0-415-05681-6. 
  3. ^ William Harley Davidson. "Breakthrough". John Wiley and Sons, 2003, ISBN 0-471-45440-0, 978-0-471-45440-3. 

Devan Chetty


  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.

Cost_leadership
 



 
Like2do.com was developed using defaultLogic.com's knowledge management platform. It allows users to manage learning and research. Visit defaultLogic's other partner sites below:
PopFlock.com : Music Genres | Musicians | Musical Instruments | Music Industry
NCR Works : Retail Banking | Restaurant Industry | Retail Industry | Hospitality Industry