How a Company Can Compete Without Being the Cheapest

A strategy based entirely on low prices can be difficult to sustain when rivals have lower costs or greater purchasing power. Companies can instead compete through reliability, convenience, specialised expertise, design or better support.

These advantages matter when they solve a problem customers value and are difficult to copy. Businesses should identify the customers they serve best and the capabilities needed to deliver consistently. Competitive strategy is about making choices—and giving customers a reason to choose the company beyond a discount.

Why it matters: A strategy based entirely on low prices can be difficult to sustain when rivals have lower costs or greater purchasing power. Companies can instead compete through reliability, convenience, specialised expertise, design or better support.