Cost Leadership

Description of Cost Leadership. Explanation.

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Definition Cost Leadership. Description.

Cost Leadership is one of the three viable basic types of Competitive Advantage according to Michael Porter.

Achieving a low cost strategy means that a firm sets out to become the low cost producer in its industry. If more than one company choose this strategy in an industry, this is usually disastrous. Cost Leadership is often achieved by Economies of Scale.

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End of description Cost Leadership. An explanation.

                     
                      ●  (Germany)
                      
                    Cost Leadership
                    "The company which produces at minimum costs in their business field, which is most efficient in processes, procurement, labour cost etc. has cost leadership."