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Low-Cost Production - Explained

What is a Low-Cost Producer?

Written by Jason Gordon

Updated at April 7th, 2022

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Table of Contents

What is a Low-Cost Producer?What is a Low-Cost Strategy?

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
low-cost producer low-cost strategy

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