Cost leadership is a business strategy where a company aims to become the lowest-cost producer in its industry. By minimizing production and operational costs, the company can offer products or services at lower prices than competitors. This approach often involves economies of scale, efficient supply chain management, and cost-effective technology. Companies that successfully implement cost leadership can attract price-sensitive customers and gain a larger market share. However, maintaining low costs requires continuous improvement and innovation to avoid compromising quality. Examples of firms that have employed this strategy include Walmart and McDonald's, which focus on efficiency to keep prices low.