Production Cost Advantage

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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 ?
Management expects the consolidation plan to reduce future capital and equipment requirements, improve manufacturing flexibility and generate significant production cost advantages.
I expect that we will see a continuation of this trend, as more foreign investors find that the production cost advantages they enjoy in their homelands is less valuable than being directly attached to the world's greatest consumer market.
Moreover, the Burley plant fits well with our destination model and will serve local markets for both fuel and feed with significant production cost advantages over products imported
With the production cost advantages of DTM, that path can be extended to support new applications, emerging and future technologies such as wearables, Internet connected devices and the Internet of Things (IoT).
Another company is scheduled this month to gauge the system's utility in producing cement, evaluating energy, time and production cost advantages.
Consequently, Natural Soda believes it enjoys significant production cost advantages over chemically manufactured product.
This news release may contain forward-looking statements, including those concerning production cost advantages, applications of technology, production methods, manufacturing productivity and manufacturing performance.
This economic shift reflects an increase in outsourcing of chip production to Asian contract chip manufacturers, local production cost advantages, and growing consumption of electronics goods in the region," concludes Smith.
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