I came across an article of Ed Ainsworth claiming that cost leadership should be the primary strategy of all companies, is it though? Look at large companies that specialized in unique products; designer houses. They produce unique and trademarked luxuries that create particular customer satisfaction that varies differently for different people towards different brands. Can you say that they should focus on cost leadership instead of differentiation then? They have been thriving over the years and proving to be growing despite the economic turmoil in the past years.

“Ainsworth recommended companies communicate their plans to become a cost leader with their supply base and ensure suppliers are on board too.” I think that as long as there is a certain inelastic degree to the product, companies can continue to pass on the costs to consumers. Generic force for every company is heavily depended on the products it produces and industry it operates in. Cost leadership would be ideal for mass-produced consumer goods such as snacks and beverages. Other firms that offer products such as sports cars and luxuries are more ideally fitted with differentiation. The claim is not necessarily incorrect, but each company should consider factors to determine which force is more suitable for its operations.