
What is the meaning of Cost Leadership Strategies
What is the meaning of Cost Leadership Strategies
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What is the meaning of Cost Leadership Strategies
What is the meaning of Cost Leadership Strategies
Cost leadership is a concept developed by Michael Porter and utilised in business strategy. It describes a way to establish the competitive advantage. Cost leadership, basically, means the lowest cost of operation in the industry.
A number of cost elements affect the relative attractiveness of generic strategies. A successful cost leadership strategy usually permeates the entire firm, as evidenced by high efficiency, low overhead cost, and waste reduction. The low cost leadership should be such that no competitors are able to imitate so that it can result in sustainable competitive advantage to the cost leader firm.
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