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Cost Position Analysis
An evaluation of the relative cost structures of competitors, identifying areas where they may have a cost advantage or disadvantage.
Implications
The evaluation of a company�s cost structure relative to its competitors, identifying areas where it may have a cost advantage or disadvantage, critical for strategic pricing and competitive positioning.
Example
Example: A food manufacturer conducts a cost position analysis to determine how its production costs compare to those of its main competitors, informing pricing and cost reduction strategies.
Related Terms
Different from general cost analysis, cost position analysis specifically compares a company�s costs to those of its competitors to identify relative strengths and weaknesses.
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