Which strategy is focused on achieving the lowest costs in an industry?

The cost leadership strategy is centered on becoming the low-cost producer in an industry. This approach allows a company to compete effectively by reducing operational costs and thus offering products or services at lower prices than its competitors. By achieving economies of scale, optimizing production processes, or finding cost-effective supply chains, organizations can dominate the market by attracting price-sensitive customers. The goal of this strategy is not only to maintain profitability at lower price points but also to gain a competitive edge by capturing a larger market share.

In contrast, the differentiation strategy focuses on creating unique products or services that justify a premium price. A niche-focused strategy targets a specific segment of the market, often with specialized offerings, while the communication strategy pertains to how a company conveys its messages and engages with customers. These alternatives do not prioritize cost reduction as their primary aim, reinforcing why the cost leadership strategy is the correct answer in this context.