Cost leadership: When a company sells cheap and makes money



This lesson on Business strategy introduces the idea behind implementing a cost leadership strategy.

Hope you will enjoy the video! Here’s a link to the full course on Udemy:
https://www.udemy.com/course/mba-in-a-box-business-lessons-from-a-ceo/?referralCode=F6026A89249995D14BCD

Cost leadership consists in producing products or providing services that are cheaper than the ones offered by competitor companies.

If a company adopts a cost leadership strategy and manages to sustain lower costs than its peers, then it will be successful.

Typically, cost leaders will sell at lower prices than their competitors; this way, they are going to win price sensitive customers – the ones looking for a bargain.

Selling at lower prices than competitors is a valid idea. However, companies need to find a way to do that. If you want to sell at a lower price, then you have to do something differently than your peers.

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