competing on cost

USAGE SUMMARY

The phrase "competing on cost" is correct and usable in written English.
It can be used in contexts where businesses or organizations are trying to gain an advantage by offering lower prices than their competitors. Example: "In today's market, many companies are competing on cost to attract price-sensitive customers."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

11 human-written examples

Until very recently rich countries could be confident that they had "knowledge driven, high value" economies while poorer countries made low value goods, competing on cost not quality.

The Guardian - Opinion

But a lot of companies are not just competing on cost, but on value -- to convince people to pay a little more for their product.

The New York Times

At 24/7 Customer, the strategy is to shift from providing call-center services and competing on cost to remotely reengineering the service processes of U.S. and European clients.

Harvard Business Review

In that sense, the Scandinavian design-centered players may represent the future for companies elsewhere in the developed world, where the high-margin approach may prove an extremely attractive perhaps the only alternative to competing on cost.

Harvard Business Review

In which case, "we say you can split the difference across all the posts and uplift everyone slightly", says Hume. "But to be honest it rarely comes up – most charities take it and run!" Hume also acknowledges that higher wages can pose an issue to charities bidding for contracts and competing on cost.

The Guardian

Often, this happens because the drug with lowest market share will give up competing on cost.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

49 human-written examples

Instead of racing to the bottom by competing on costs, Infosys is persuading its Western clients to send ever more sophisticated work offshore to Infosys.

Forbes

Critics say one way in which Bangladesh competes on cost is that poor workers are unlikely to file claims for accidents or bad health.

The Economist

Renewables could then compete on cost alone.

The Economist

The UK cannot compete on cost.

The Guardian - Sport

Nor could Altair compete on cost.

The New York Times - Tech

Expert writing Tips

Best practice

When discussing long-term strategy, consider using "cost leadership" instead of "competing on cost" for a more formal tone.

Common error

Don't solely focus on cutting costs without considering the impact on product or service quality. Customers often seek the best value, not just the lowest price.

Linguistic Context

The phrase "competing on cost" functions as a gerund phrase, acting as a noun that describes a business strategy. It often appears as a complement to verbs like 'is' or 'involves', illustrating a method of gaining a competitive advantage.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Science

30%

Formal & Business

20%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "competing on cost" describes a business strategy focused on offering the lowest prices to attract customers. Ludwig AI analysis indicates that the phrase is grammatically correct and sees usage across news, scientific, and business contexts. While "competing on cost" is a valid strategy, experts warn against solely focusing on cost reduction without considering the impact on quality and value. Alternatives like "cost-based competition" and "price-driven competition" offer similar meanings, but may be appropriate in specific contexts. In conclusion, while frequently discussed in multiple contexts, remember that a solid understanding of value is key for long-term success.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cost-based competition

This alternative uses a noun phrase to describe the competitive strategy, emphasizing the "cost" aspect.

price-driven competition

Replaces "cost" with "price", focusing on the tangible aspect of cost for the customer.

competing on affordability

Emphasizes the accessibility of the product or service to customers.

cost leadership strategy

This alternative is more formal and emphasizes a broader strategic approach to achieving lower costs.

focusing on low prices

Shifts the focus to the outcome of cost management, which is offering low prices.

emphasizing cost efficiency

Highlights the operational aspect of achieving lower costs.

gaining an edge through lower prices

This alternative highlights the advantage gained by offering more competitive pricing.

underpricing competitors

Describes a direct action taken to win customers through lower prices.

offering the lowest prices

Focuses specifically on the outcome of having the most appealing prices.

pursuing a low-cost advantage

Focuses on the strategic pursuit of lower costs to achieve a competitive edge.

FAQs

What does "competing on cost" mean?

Competing on cost means a business strategy where companies attempt to attract customers by offering lower prices than their competitors. This typically involves minimizing production and operational expenses.

What are some alternatives to "competing on cost"?

You can use alternatives like "price-driven competition", "cost-based competition", or "focusing on low prices" to convey a similar meaning.

How does "competing on cost" differ from "competing on value"?

While "competing on cost" focuses on offering the lowest price, "competing on value" involves providing the best combination of quality, service, and price. Value-based competition emphasizes benefits beyond just the price tag.

Is "competing on cost" a sustainable business strategy?

Competing solely on cost can be challenging in the long term. It may lead to a price war that erodes profits. Sustainable strategies often involve differentiating through quality, innovation, or customer service.