Cost leadership: When a company sells cheap and makes money

This lesson on Business strategy introduces the idea behind implementing a cost leadership strategy.

Hope you will enjoy the video! Here's a link to the full course on Udemy:

Cost leadership consists in producing products or providing services that are cheaper than the ones offered by competitor companies.

If a company adopts a cost leadership strategy and manages to sustain lower costs than its peers, then it will be successful.

Typically, cost leaders will sell at lower prices than their competitors; this way, they are going to win price sensitive customers – the ones looking for a bargain.

Selling at lower prices than competitors is a valid idea. However, companies need to find a way to do that. If you want to sell at a lower price, then you have to do something differently than your peers.

[thomasgamble]

great explanation! Thank you guys a lot for making this video!

[Jabawongky]

524 likes for such amazing lesson, no wonder the number of rich people is far lesser than the average