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cost leadership
Cost leadership is a concept developed by Michael Porter, used in business strategy. It describes a way to establish the competitive advantage. Cost leadership, in basic words, means the lowest cost of operation in the industry.〔(【引用サイトリンク】author=Michael J. Stahl, David W. Grigsby )〕 The cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve).
A ''cost leadership strategy'' aims to exploit scale of production, well defined scope and other economies (e.g a good purchasing approach), producing highly standardized products, using high technology.〔(【引用サイトリンク】author=Gavin C. Reid )〕
In the last years more and more companies choose a strategic mix to achieve market leadership. This patterns consist in simultaneous cost leadership, superior customer service and product leadership. 〔(【引用サイトリンク】author=William Harley Davidson )〕
Cost leadership is different from price leadership. A company could be the lowest cost producer, yet not offer the lowest-priced products or services. If so, that company would have a higher than average profitability. However, cost leader companies do compete on price and are very effective at such a form of competition, having a low cost structure and management. 〔
==References==
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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