Cost Advantage Strategy

Cateligent07 Mar, 2025Technology

A cost-advantage strategy is reducing production and operating costs to charge less than the competition while being profitable. The approach increases market competitiveness, brings in price-conscious customers, and improves margins. Companies obtain cost advantage by being efficient in processes, economies of scale, and optimizing their supply chains, and therefore, it is a very potent strategy for the long-term expansion and sustainability of competitive businesses.