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Costing Assignment
Sachin Lakade:-32
Why overall cost leadership
strategy
Overall cost leadership is achieved by the
firm that is able to maintain the lowest
costs of production and distribution within
an industry.
Firms pursuing this strategy must be
effective in engineering, purchasing,
manufacturing, and physical distribution.
Marketing is less important.
Overall cost leadership is achieved when you offer a
"standard" product, but your costs are significantly
lower than the average for the industry.
However, it is important that low costs must not be
perceived as low quality by the customer,because in
that case you will have to lower your price and this will
destroy your competitive advantage.