Low Cost Strategy

Posted in Marketing and Strategy Terms, Total Reads: 7728

Definition: Low Cost Strategy

Low cost strategy is a type of pricing strategy in which the firm offers the products at low price. This strategy helps to stimulate the demand & gain higher market share.

The firm can gain cost advantages by increasing their efficiency, taking advantage of economies of scale, or by getting the raw material at low cost.

For a firm to be cost leader the following internal strengths are required:

• Access to capital to make significant investments.

• Efficiency in Production system

• Expertise to improve the manufacturing process

The low cost strategy also comes up with the risk that other firms may also reduce their prices & a price may start.


Browse the definition and meaning of more terms similar to Low Cost Strategy. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin