Cost advantage refers to the ability of a company to produce goods or services at a lower cost than its competitors. This can be achieved through a variety of methods, including efficient production processes, economies of scale, and strategic sourcing.
Achieving a cost advantage can provide a number of benefits for a company, including increased profitability, market share growth, and competitive advantage. Historically, companies have sought to achieve cost advantages through a variety of strategies, including vertical integration, outsourcing, and offshoring.