APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Cost leadership strategy

Involves producing at the lowest possible cost, in order to either: offer the lowest-priced product or service and, thus, achieve objectives relating to sales and market share, or enjoy a higher than average profitability and, thus, achieve objectives relating to profit, return on capital employed and / or return to shareholders. It often involves producing or providing and selling large volumes of a standard ‘no frills’ product or service and, thus, benefiting from economies of scale ie factors that lead to a reduction in unit cost as a business increases its output / size. But, whatever the nature of the business’s operations, emphasis will (fairly obviously) be placed on minimising costs in all areas of the business.

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