What are the keys to success in getting low-cost leadership

Question

What are the keys to success in getting low-cost leadership?

Answer 1

The keys to success in getting low-cost leadership:

1. To be successful with a low-cost provider strategy, company managers have to inspect each cost creating activity and conclude what drives its cost.

2. While low-cost providers are winners of frugality, they are usually violent in investing in resources and the capabilities that assure to drive costs out of the business.

3. The Wal-Mart is one of the leading practitioners of low-cost leadership. Other companies renowned for their winning use of low-cost provider strategies contain Lincoln Electric, Stratton and Briggs, Bick, Decker and Black, Beaird-Poulan, Stride Rite, and Whirlpool and General Electric.