Overview: Cost Leadership | ||
Type | ||
Definition | A strategy to achieve the lowest cost structure for a product or service. | |
Value | Allows for higher margins at every price point relative to the competition. | |
Related Concepts |
top
»
marketing
»
product marketing
»
product development
»
cost leadership
»
cost leadership definition
What is Cost Leadership? John Spacey, updated on
Cost leadership is a business strategy that seeks to produce a product or service at a cheaper price than all other competition. It is often a difficult strategy to realize, as costs in many industries are similar from one producer to the next. Cost leadership is typically achieved with economies of scale, lower input costs such as labor, process optimization and innovative methods.
Cost leadership gives a firm flexibility on pricing with higher margins at every price point than the competition. It should be noted that the cost leader doesn't necessarily offer the lowest price. In fact, they may have a strong brand or superior quality that allows them to charge a premium.
Product MarketingThis is the complete list of articles we have written about product marketing.If you enjoyed this page, please consider bookmarking Simplicable.
Product StrategyA checklist for developing a product strategy.Pricing StrategyAn overview of common pricing strategies.
Product Value
A definition of product value with examples.
PremiumisationThe common types of premiumisation.Product Demand
The basic types of product demand.
Marketing Myopia
A definition of marketing myopia with examples.
Product Extension
The definition of product extension with examples.
Product Market
An overview of product markets with examples.
Product Culture
An overview of product culture with examples.
Product MarketingA guide to product marketing.Product Features Examples
A list of common product features.
Product Planning
An overview of product planning with examples.
Go-To-Market Strategy
An overview of go-to-market strategy with examples.
Product Metrics
A list of common product metrics.
MarketingA list of key marketing strategies.Branding GuideAn overview of 20+ common branding techniques.Marketing MetricsA list of common ways to measure marketing results.Product Positioning
A definition of product positioning with examples.
Brand Storytelling
Common types of brand storytelling.
Cross-Selling
The common types of cross-selling.
Marketing Campaign
The common types of marketing campaign.
Marketing Automation
The common types of marketing automation.
Target Marketing
The common types of target marketing.
TrendingThe most popular articles on Simplicable in the past day.New ArticlesRecent posts or updates on Simplicable.
© 2010-2024 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. View credits & copyrights or citation information for this page. |