Cost reduction refers to the strategies and actions taken by a business to lower its expenses and improve profitability. This can involve various methods, such as streamlining operations, negotiating better prices with suppliers, or adopting more efficient technologies. The goal is to maintain or enhance product quality while reducing overall costs. Companies often analyze their budget and spending patterns to identify areas where savings can be made. By implementing cost reduction techniques, businesses can allocate resources more effectively, invest in growth opportunities, and remain competitive in their respective markets.