A pricing strategy in which a company offers a relatively low price to stimulate demand and gain market share.

What is a low cost strategy example?

In a low cost strategy, the true winner is the company with the actual lowest cost in the market place. For example, if two companies make essentially identical products that sell at the same price in the market place, the one with the lower costs has the advantage of a higher level of profit per sale.

Why is low cost strategy good?

Low-cost strategy enables the firm to sell its product/service with a lower price compared to its competitors because of lower costs of producing products/service; as a result of this, they win a competitive advantage in the industry.