What is the primary focus of a company aiming for cost-leadership?

The primary focus of a company aiming for cost-leadership is indeed to beat competitors through lower prices. This strategy is centered around achieving the lowest operational costs in the industry, enabling the company to offer products or services at prices that undercut those of competitors. By doing so, the company can attract price-sensitive customers and potentially gain a larger market share.

Cost-leadership typically involves streamlining operations, minimizing overhead, and leveraging economies of scale to reduce costs. The goal is to maintain profitability even while selling at a lower price than rivals, thus appealing directly to consumers who prioritize value over other features. This strategy can also create a significant competitive advantage as it can deter new entrants into the market who may find it challenging to compete with such low prices. While other strategies may focus on premium offerings or rapid market expansion, the essence of cost-leadership lies in prioritizing lower pricing as a means to dominate the market.