Cost Leadership Strategy Examples

Cost strategy leadership is simplistic in some ways, but highly effective when implemented correctly. Instead of trying to differentiate a product or service based on its features, cost strategy leadership dictates that cost alone can help to market an item to a targeted narrow audience. It isn’t necessarily about charging the lowest overall cost at any given moment, but is instead a combination of value, cost, and accessibility.

The cost strategy leadership of Redbox is an excellent example of this. For $1.20-$1.50 in most markets, a consumer can rent a movie as they enter or leave a grocery store. This allows people to see new movies for a cheaper price, but it isn’t as convenient a way to watch movies as online streaming through Hulu Plus or Netflix might be.

Cost Strategy Leadership Requires You To Know Your Market

In order for this style of leadership to be effective, it is incredibly important for you to understand what your target market requires. Papa Murphy’s is an excellent example of this. Instead of baking pizzas in their store, they sell them to customers in a raw state. This allows the businesses to sell products to customers who use food stamps and that means they can attract customers who might not otherwise be able to eat take-out pizza.

Sometimes it isn’t the wealth of a customer that is the target of cost strategy leadership. Sometimes it is the amount of disposable income that a targeted consumer has instead. Claire’s is a retail outlet that has maximized this particular strategy. They focus on low-cost jewelry and accessories for young women and teens with just a few high-end items. Having grown to over 3,000 locations in the US alone, it is clear to see how effective this strategy can be.

The actual value that someone receives can also be the target of cost strategy leadership. Five Guys is a prime example of this. Instead of having to add costs to get more toppings on a burger or sandwich, customers can receive multiple toppings and sauces for free. The orders are made from scratch and that means customers need to wait a little while for their food. To keep people occupied, Five Guys provides free peanuts for more increased value.

How Goods Are Delivered Is Also Part of This Leadership Strategy

Sometimes the ease of access to a product or service is what will set it apart, even if it is the most expensive product in a community. You can see this with businesses that are exclusively drive-thru in nature. Rather than divide the attention of a staff between a sales floor and an outside money maker, the drive-thru becomes the sole focus of the business. This means customers can have their needs met more quickly and that savings in time becomes the focus, not the actual cost of the product.

At its core, cost strategy leadership means setting a business, brand, or product apart from the competition by providing a higher level of value in some way. Whether that is actual cost, to specific demographics, or simply through time savings, better revenues can be had whenever a customer feels like they are saving money. That’s what this leadership style is all about.

Femminilità sofisticata e strutturata quella espressa hogan outlet dalla nuova collezione borse Céline per la primavera hogan outlet online La collezione, affidata alla designer inglese Phoebe nike tn Philo, presenta borse a soffietto, alcune con i nike tn pas cher richiami glam secondo i trend di stagione, come pjs pas cher le borchie, ma anche particolari e originaliparajumpers pas cher maxi shopper rettangolari che siwoolrich outlet Ogni nuova collezione Chanel crea un’aspettativaoutlet woolrich online altissima che raramente viene delusa! è il caso delle golden goose saldi borse Chanel per la primavera estate 2017 della golden goose saldi La nuova collezione borse estive disegnata da Karl golden goose saldi Lagerfeld trascina le fashion addicted in un mondo golden goose saldi fantascientifico, parallelo e futurista, in cui le sac goyard pas cher bag dalle forme squadrate a volte diventano dei verisac goyard pas cher e propri mini robot. La storia dell’eleganza Chanelsac goyard pas cher s si mescola al futurismo quasi punksac goyard pas cher VERSACE BORSE 2017 NUOVA COLLEZIONEsac goyard pas cher Allure sporty per questa collezione, in gradoscarpe hogan outlet online però di non perdere mai di femminilità, scarpe hogan outlet online con borse funzionali che superano il scarpe hogan outlet online concetto di outfit da sera e da giornoscarpe hogan outlet online Le borse Versace primavera estate 2017 scarpe hogan outlet online sono a mano sono piccole, squadrate, scarpe hogan outlet online geometriche oppure maxi buste rettangolari. Non mancano i richiami glam fetish tanto cari alla stilista italiana, come le borchie e le catene, e i colori spazianopjs pas cher dal classico nero al rosso, dal giallo limone pjs pas cher Una collezione definita “lusso privato” dal pjs pas cher direttore creativo di Bottega Veneta, Tomas Maier.parajumpers pas cher I grandi marchi della moda stanno puntando sul lusso parajumpers pas cher funzionale e accessibile, dunque su borse e capi che parajumpers pas cher