Cost leadership is the strategy of gaining competitive advantage by lowering the price of products. Following cost leadership makes it easier for companies to participate in price wars. It is easier for large companies to adopt this strategy than for small ones. Large companies can easily increase the scale of production. Cost leadership is the strategy of achieving the lowest cost position among competitors in an industry. The company with the lowest operating costs in a given industry or market holds the position of cost leader. Also known as cost advantage, cost leadership is one of the generic strategies proposed by economist Michael Porter,