Production Cost Advantage

Production Cost Advantage

A source of competitive advantage that depends on producing some product or service at the lowest cost.

Production Cost Advantage

The ability for an economic actor to produce a good or service at a lower cost. For example, if a company produces 100 widgets for $50 and a second company produces 100 widgets for $25, the second company has a production cost advantage in the production of widgets. See also: comparative advantage, absolute advantage.
References in periodicals archive ?
Synthetic operations do benefit from lower transport costs as they are located closer to consumers but producers of natural soda ash have a clear production cost advantage.
As a junction city between Beijing and Tianjin, the production cost advantage and location advantages have made Langfang become a newly emerging indutrial base.
The year ahead is looking good for the petrochemical sector in the region, given the regions lower production cost advantage.
Though Egypt never officially banned the import of steel, for years it importation was infeasible as a result of high freight costs and a production cost advantage enjoyed by local producers.
Engine choice varies and Renault is driving home its exchange rate and production cost advantage by raising equipment levels.
In the past, Chinese producers have been able to export excess production but the production cost advantage of US companies means that this will become increasingly difficult.
China has no production cost advantage and high-standard companies such as SolarWorld remain the industry s technology leaders, the company said, but government-sponsored Chinese producers have used illegal, export-intensive subsidies and artificially and temporarily low pricing tactics to undermine them.
The region's unparalleled production cost advantage and the willingness of its governments to diversify their oil-based economies has led to exponential growth of the petrochemical industry.
Research, including a National Renewable Energy Laboratory report, concludes China has no solar production cost advantage.
Solaria's novel approach gives it a substantial production cost advantage without a high level of capital investment," added Mark Perutz, Partner at DBL Investors.
This production cost advantage has allowed GL Biochem to price its products and services below other major manufacturers and, therefore, establish a prominent position in the pre-clinical custom peptide and reagent markets.
Utilizing Vietnam's Production Cost Advantage to Drive Higher Business Growth
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