Low-Cost Provider Strategy
The objective of a company using a low-cost provider strategy is to sell its products at the lowest possible price to attract customers. This is known as a price advantage. Companies using this strategy will typically earn low margins but achieve high sales volumes. Low-cost providers aim their products at the broad market, making them appeal to as many consumers as possible to achieve high sales volume.
Focused Low-Cost
The focused low-cost strategy also aims to create a price advantage for the company. Where the focused low-cost strategy differs from the low-cost provider strategy is in the company's focus. A company using this strategy focuses on a specific market niche, offering products to a narrow market segment instead of a broad one. The company then aims to be the cheapest supplier in this niche but not necessarily in the overall market