Cost Leadership

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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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Porter: Misconceptions about Strategy and Competitive Advantage

 
 

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Compare also: Sustainable Competitive Advantage

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