Beruflich Dokumente
Kultur Dokumente
Analysis
Cost leadership is a different concept than Cost Cutting
It is learnt from the case study that cost cutting is a totally different concept
as compared to cost leadership, although, both are demonstrating the lower
cost focus. Cost leadership is a marketing strategy that aims to provide the
same quality of product prevailing in the market at lower cost.
On the other hand, cost cutting is related to operational effectiveness. It is
possible that a company that has undergone product differentiation strategy
in the market may also undergo cost cutting strategy though operational
effectiveness. This may include:
i.
ii.
iii.
iv.
v.