SOLUTIONS FOR MARKET DOMINANCE THROUGH COST LEADER STRATEGY

Liviu Neamtu () and Adina Neamtu

Revista Economica, 2012, vol. Supplement, issue 2, 255-261

Abstract: In order to enter the markets, companies have various possibilities to establish the approach strategies through their prices and depending on their objectives. The global domination strategy at the level of costs is an excellent method of dominating the market through lower prices in comparison with competition ones. The paper emphasizes solutions for cost global domination and reveals the main phases and activities that successively help to permanently reduce the costs. We proposed a model for the strategy of cost leader based by simultaneous analyses about five factors whose confrontation will allow to determine one or several possible prices tested before choosing the final solution: legal constraints; enterprise objectives in the matter of price; demand; product characteristics; competition. In relation to the criteria of price setting, we propose four application variants of the cost leader policy: market cost leader, product cost leader, channel cost leader, field cost leader.

Date: 2012
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