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Cost Advantage
The advantage gained by a company through lower production or operational costs.
Implications
A company�s ability to produce goods or services at a lower cost than competitors, often achieved through economies of scale, efficient processes, or access to cheaper resources, leading to a competitive edge.
Example
Example: A manufacturing firm gains a cost advantage by automating its production lines, reducing labor costs and increasing output efficiency compared to its competitors.
Related Terms
Different from price advantage, which involves selling at lower prices, cost advantage refers to lower production costs, allowing for greater profitability or competitive pricing.
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