Low cost relative to competitors is the theme of this strategy, although quality, service, and other areas cannot be ignored. To be the low-cost leader may require the following:
Aggressive construction of efficient-scale plants
Vigorous pursuit of cost reductions
Tight cost and overhead control
Avoidance of marginal customer accounts
Cost minimization in areas like salaries, R & D, and advertising
A high relative market share or other advantages, such as favorable access to raw materials
Designing products for ease in manufacturing
Maintaining a wide line of related products to spread costs
Serving all major customer groups in order to build volume
Heavy up-front capital investment in state-of-the-art equipment