In Porter's model, what is the cost leadership strategy?

Win by having the lowest production costs, which lets you offer low prices and secure your market position.

A cost leader competes on price efficiency. By driving down its cost base — through scale, process optimization, cheaper inputs, automation — it can either undercut rivals on price or earn higher margins at the market price.

The defensive value: if you're the lowest-cost producer, you can survive a price war that bankrupts less efficient competitors.

Tip: Think of discount retailers and budget airlines — their entire model is squeezing costs so they can win on price. The risk is a "race to the bottom" where margins evaporate.

Go deeper:

• Porter's generic strategies (Wikipedia) — cost leadership in the advantage×scope matrix alongside the other generics.