logo share us

Cost Leadership


Definition: Cost Leadership is one of the 3 generic strategies that can provide a competitive advantage according to Michael Porter.
In a CL strategy, a firm sets out to become the low cost producer in its industry. Often achieved by economies of scale. A cost leader must achieve parity or at least proximity in the bases of differentiation, even though it relies on CL for its competitive advantage.
If more than one company try to achieve CL in the same market, this is usually disastrous.


Learn more about Cost Leadership.

More on competition: Competition Levels, Competitive Advantage, Competitive Intelligence, Curveball Strategy, Differentiation, more on competition...

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

add us to your desktop

Add MBA Brief to your desktop / iPad


© 2024 MBA Brief - Last updated: 20-7-2024  -  Privacy   |   Terms