Can cost leadership strategy be effective for larger businesses?
Asked 3 years ago
Hi, in the past year, I have moved my business from a brick-and-mortar store to a Wix-based e-commerce store. As my business has reduced a lot of its costs now I do not need to pay for rent and bills I have been reducing the price in line with this to maximize my potential customer base. However, as my business is already established, I am wondering whether this is the best approach to be taken. Are there any examples of larger businesses implementing such a strategy?
Abeeha Qasmi
Wednesday, January 18, 2023
Yes, a cost leadership strategy can be effective for larger businesses. It allows you to offer customers high-quality products at a low price. As a matter of fact, it's often the case that large companies have a lot more competition than smaller businesses do. This means that if you're a large company, you may charge higher prices and still sell your products or services at a relatively low cost to maintain your market share.
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