Healthcare Glossary

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Cost leadership

The Cost Leadership Strategy is a system of producing goods at a lower cost than one's competitors. Companies that adopt a cost-leadership strategy offer relatively standardised products with features or characteristics that are acceptable to consumers. This means that companies offer standardised products to an industry's typical customer. Customers generally receive value when a company successfully implements a cost leadership strategy. However companies that want to achieve success by adhering to a cost-leadership strategy must maintain continual efforts focused on lowering their costs.

See also:
Cost–benefit analysis
Cost-effective (healthcare economics)
Cost-effectiveness league table (healthcare economics)
Cost-effectiveness threshold (health economics)
Cost-minimisation analysis (CMA)
Cost consequences analysis (CCA)