THE INFLUENCE OF COST LEADERSHIP ON COMPETITIVE ADVANTAGE
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ABSTRACT
THE INFLUENCE OF COST LEADERSHIP ON COMPETITIVE ADVANTAGE
This research explores the influence of cost leadership on competitive advantage with the objectives: (1) to evaluate how cost leadership strategies enhance competitive positioning; (2) to identify the key components of effective cost leadership; (3) to understand the challenges in maintaining cost leadership. A survey design is justified for this study to gather quantitative data from a wide sample. Using Taro Yamane's formula, a sample size of 310 respondents from Port Harcourt is selected, representing businesses across various sectors. A manufacturing firm is chosen as the case study due to the relevance of cost leadership in manufacturing competitiveness. The survey instrument has a reliability coefficient score of 0.88. Findings show that businesses adopting cost leadership strategies, such as economies of scale and process efficiency, achieve significant competitive advantages. However, maintaining cost leadership poses challenges, including the risk of quality compromise and market fluctuations. It is recommended that businesses continuously innovate their processes, invest in technology, and focus on maintaining high quality to sustain their competitive edge through cost leadership.
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