What is the Cost leadership strategy about?

Cost-leadership strategy involves becoming the lowest-cost organisation in a domain of activity. This can be achieved through: • Lower input costs. (Goods and labour) • Economies of scale (The cost advantage of the more you produce, the lower average cost per good, especially producing at MES) • Economies of experience (Gains in labour productivity as staff learn to do things more cheaply over time (learning effect) • Economies of product/process design (Costs are saved through more efficient designs or equipment as experience shows what works best.) It is a broad target / lower cost strategy, (See pic)