Cost leadership

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
May 10, 2022 at 1:14 am #655282
Noah098
Member
- Topics: 935
- Replies: 352
Sir in case of cost leadership, does the company compete with its rivals at the same market price as is in the industry(and aims to maximise profits),

OR does it use its lowest cost advantage to further reduce the price, and focus on maximising sales volume?
May 10, 2022 at 3:15 pm #655336
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10661
Strictly, cost leadership allows a company to make good profits at the current market price. In practice low cost producers will probably lower sales prices to put pressure on their less efficient rivals.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.