Scale economies
We could say that the competition in costs is the traditional essence for achieving a competitive advantage for an enterprise. This seems to be the only way of competing historically. As a matter of fact, scale economies, mass distribution, etc. emerge from the search for price reduction. This reduction in costs allows the enterprise to supply the market with products or services in a price lower than that offered by the competition.
A competitive advantage in costs for an enterprise is the action of placing products or services (similar to those of its competitors) at lower prices.
It runs away from decorations and focuses in standardized products. Standardized products (such as nuts and bolts) lack of strong opportunities for competing besides costs. These days, there is a fierce cost competition in non-regularized sectors such as air transport, bank, communications, ...
