Cost leadership is essential because it enables companies to create goods or provide services for less

money than their competitors. Reduced operating costs and the development of products with the
lowest prices are traits of a cost leadership strategy. The market is interested in it because consumers
want high-quality goods at reasonable prices. Cost effectiveness increases a company's profitability, but
it requires creativity and innovation to differentiate it from competition. Cost Leadership Strategies
according to the video consists 4 concepts:

A Economies of scale are cost benefits that can happen when a business expands its manufacturing
scale and becomes more efficient, leading to a reduced cost-per-unit, the higher the quantity of output
the lower its fixed cost. The benefits of economies of scale include that they allow big businesses to
lower their expenses, pass the savings on to the customer, and outperform the competition.

B. Economies of Scope is a concept where you produce or a company produces two different
complimentary product. For example, selling drinks or goods in a gasoline station(which the owner of
the gasoline station also produces).This way, the complimentary products will also give complimentary
profits to your business.

C. Process design is a very crucial part of company production. It goes over the development of
management, organizational structure, and improvised tools and equipment used to create your items.
The internal components of your firm must be improved because the more effective and solid the
company's basis is, the permanently lower the cost of producing your goods will be. Hence, if the
business works effectively and functions properly, clients will receive more effective and high-quality
items.

D Lower input cost talk about the strategic way of lowering your cost through lower wages, low cost
materials, and bargaining with suppliers. For example, you are a business owner and instead of hiring
expensive chefs, you prefer hiring inexpensive but cooks. Also, choosing lower cost raw materials will
lessen your expenses in producing your product.

These ideas are extremely important for operating your business; to build a successful and competitive
company, you need a more mature, logical, and realistic mindset. The majority of consumers favor
affordable, high-quality goods over pricey ones. The more the market grows, the more money your
business makes.