Low-Cost Production - Explained
What is a Low-Cost Producer?
Written by Jason Gordon
Updated at April 7th, 2022
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What is a Low-Cost Producer?
A low-cost producer is a company in a specific industry that can produce goods at a lower cost than other producers. That is, the producer has a higher profit margin on the sale of a product than competitors.
Back to: STRATEGY & PLANNING
What is a Low-Cost Strategy?
This often leads to the producer charging lower prices for products to achieve higher sales that competitors. Being a low-cost producer is a significant strategic advantage.
Related Topics
- Competitive Strategies
- Functional Strategies
- Organizational Strategies
- Operational Strategy
- Contestable Market Theory
- Value Disciplines
- Porter's Generic Strategies
- Differentiation (Strategy)
- Commoditize
- Niche Market Strategy
- Long Tail
- Low-Cost Production
- Resource-Based View of the Firm
- Ansoff Matrix
- Customer-Centric Strategy
- Blue Ocean Strategy
- Overfished Ocean Strategy
- Hedgehog Concept (Strategy)
- Innovation Strategy
- Bleeding Edge
- Disintermediation (Strategy)
- Strategic Alliance
- Coopetition (Strategy)
- Loss Leader Strategy
- Lean Strategy
- Game Theory Perspectives