cost (noun, cost, \ kɒːst \) advantage (noun, ad-van-tage, \ ədˈvæntɪdʒ \)
Definition: is a company’s dominant market position that was achieved by taking advantage of such factors as cheaper resources, convenient location, highly-trained employees, wide range of skills, superior or innovational technology, and efficient waste management with all of those elements ultimately serving the purpose of cutting costs and offering a specific product or service at a lower price than the competitors. A cost advantage is usually calculated for comparable products and doesn’t exist if there’s a substantial difference in quality between the analyzed goods.
In a Sentence:
- We were hoping to achieve a cost advantage by ordering our supplies from China, but our negotiations with a local firm fell through.
- As our staff is extremely professional, it allows us to produce and deliver our products faster and thus gain a cost advantage on the market.
- If you’re selling commodity items, it’s recommended you get a cost advantage over your competitors, as this is a business industry that is mostly dictated by the price based competition.
Synonyms and related words: competitive advantage, comparative advantage, absolute cost advantage, acquired advantage
