Cost leadership

• Overall

  aims to have the lowest costs or be the most price-competitive in the market

  Involves aiming to have the lowest costs on to be the most price-competitive in the market. A key aspect of cost leadership is that although trading with the lowest cost, the overall business should still be profitable

  Competitive advantage - the strategic advantage businesses have over their rival businesses within the competitive market
• Cost leadership extra

  Market share is gained by offering price-sensitive customers the lowest prices in the market or compared to the value they receive. Businesses can achieve this by investing in technology, research and development, and lower production costs. This allows them to spread costs across multiple areas and units, improving efficiency. By dropping prices and offering lower-cost products, businesses can gain a competitive advantage and increase their market share.