Sales Glossary > Cost Leadership

Cost Leadership

Cost leadership is a business strategy that relies on offering the lowest price for a product to beat competitors.

In other words, it's a way to differentiate your product based solely on its competitive pricing.

Despite being one of the fastest ways to win a market share, it isn't easy to implement. The companies adopting this strategy have to constantly increase their efficiency to keep the production costs below the industry average without compromising on the product quality.