14 Advantages and Disadvantages of Cost Leadership Styles

Cost leadership styles focus on resource organization. The goal is to produce goods or services at the lowest possible cost by organizing every potential resource around the current production methods. Then, by achieving the lowest possible cost, the leader can place their team or organization into a position where the lowest price in the market is charged for needed goods or services.

Cost leadership looks for specific ways to reduce cost throughout their team. Nothing is off the table. Leaders will look to add experience, embrace economies of scale, change the supply chain, or employ lean manufacturing strategies.

This leadership style will also look for cost controls, overhead efficiencies, and cost minimization in all possible departments.

There are several advantages and disadvantages of cost leadership styles to consider if you’re thinking about bring in this type of leader to the workplace.

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