Chapter 6 - Cost Leadership - 10/9

If a firm chooses a cost leadership strategy, their focus is to gain an advantage over their competitors by reducing economic costs below all of them.Nike's cost leadership is found in their supply chain and production costs. They work with suppliers and manufacturers to help keep these costs low. In their supply chain they focus on low costs, but high reliability. In turn, the sporting good industry leader spares little expense on its marketing and advertising. What they can save in manufacturing they can afford to utilize to improve consumer visibility, awareness, and eventually brand loyalty.

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