Integrated cost leadership

Posted in Marketing and Strategy Terms, Total Reads: 811
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Definition: Integrated cost leadership

Integrated cost leadership/differentiation is a business level strategy where differentiated products are offered in market at low cost. Differentiated product signifies the unique characteristics the customer values and cost leadership signifies that the product is offered at the lower-cost, i.e., at a margin just above average costs.

It is useful in gaining wide customer base especially in a global frontier.


Eg: Air Arabia is one such example where quality service is provided in terms of comfort and travel at an economic fare by cutting down on various premium in-flight services.




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