Broad vs. focused cost leadership strategies: What's the difference?

Focused cost leadership aims to decrease costs where they are most critical to the company's success. This strategy works best when there are fewer competitors, but they're still strong players. This is great for companies that need to focus on one key area of their business. They may have one strong brand or product line that they want to protect and grow.

Conversely, the broad cost leadership strategy involves adopting the "prestige for masses" approach. Using this tactic, a brand separates itself from the competition by targeting a wider audience. This strategy can be effective when there is a large market share and a wide range of products or services. It can also work if there's much competition—but it might not be worth it if you're a small company.