Cost Leadership Strategy
Competing by having lowest production costs, enabling low prices.
Formula
Competitive Advantage = Lower Unit Cost than Rivals
Real World
Ryanair built its entire business on cost leadership — stripping out extras like allocated seating and in-flight meals to undercut legacy airlines like British Airways on price while still making a profit.
Exam Focus
Distinguish cost leadership (lowest cost producer) from low-price strategy; a firm can have low costs without passing all savings to customers.
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