Low-Cost Producer

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Dictionary Says

Definition of 'Low-Cost Producer'

A company that can provide goods or services at a low cost. In general, low-cost producers utilize economies of scale in order to execute their strategy of low prices. Consumers that are sensitive to price changes will more likely shop at the stores that offer the lowest prices, if the good or service is relatively homogeneous. Alternatively, low-cost producers could even price the goods or services at the same level as their competitors and maintain a wider margin.
Investopedia Says

Investopedia explains 'Low-Cost Producer'

Becoming a low-cost producer requires enough capital to achieve economies of scale large enough to provide a distinct price advantage over competitors. This requirement is one reason why many companies are not able to be low-cost producers. Wal-Mart is likely the best example of a low-cost producer with massive economies of scale.
Search results for

'Low-Cost Producer'

  • Ultra Petroleum - Low-Cost, High-Quality

    http://stocks.investopedia.com/stock-analysis/2010/Ultra-Petroleum---Low-Cost-High-Quality-UPL-CHK-ECA-SWN-APA-DVN-COG0803.aspx
    ... IN PICTURES: Top 5 Most Hair-Raising Contracts. And why not? Ultra is a low-cost
    producer in the field, and couples that with significant production growth. ...

  • Are Coal Stocks Undervalued?

    http://stocks.investopedia.com/stock-analysis/2011/Are-Coal-Stocks-Undervalued-ACI-ICO-ANR-PCX-WLT0618.aspx
    ... It was a strategic move by Arch to increase both its presence as a low-cost producer
    of metallurgic coal, as well as to balance its coal portfolio. ...

  • Can Zoltek Keep The Wind At Its Back?

    http://stocks.investopedia.com/stock-analysis/2012/Can-Zoltek-Keep-The-Wind-At-Its-Back-ZOLT-AMSC-HXL-GE0208.aspx
    ... focused on high-value applications for carbon fiber in aerospace, Zoltek has focused
    instead on becoming a low-cost producer of more commercial-grade fiber. ...

  • How To Be A Conservative Investor

    http://www.investopedia.com/articles/basics/09/be-a-conservative-investor.asp
    ... Being a low-cost producer has the principal advantage that, when a bad year hits
    the industry, the chance of still churning out a profit or reporting a smaller ...

  • Ultra Petroleum Still A Juggernaut

    http://stocks.investopedia.com/stock-analysis/2010/Ultra-Petroleum-Still-A-Juggernaut-UPL0507.aspx
    ... The Bottom Line Ultra Petroleum is a low-cost producer with high production growth,
    and is currently out of favor due to its dependence on natural gas. ...

  • Wells Fargo Stands Out

    http://stocks.investopedia.com/stock-analysis/2009/Wells-Fargo-Stands-Out-WFC-BAC-C-USB-JPM0527.aspx
    ... (For more, see The Evolution Of Banking.). Huge Edge There's tremendous good
    leverage in being the low cost producer in any industry. ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Trade ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/trade-efficiency.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Stocks For An Inflationary World

    http://stocks.investopedia.com/stock-analysis/2011/Stocks-For-An-Inflationary-World-KO-V-MC-KSU0608.aspx
    ... (For more, see Staple Stocks Look Good In This Economy.). Being a low-cost producer
    or provider of a good or service is also helpful in an inflationary world. ...

  • Alpha Natural Resources Analyst Day Review

    http://stocks.investopedia.com/stock-analysis/2010/Alpha-Natural-Resources-Analyst-Day-Review-ANR-WLT-BHP-PCX0921.aspx
    ... The company is seeking to become a low-cost producer of coal, with high-quality,
    long-lived assets that can be sold to both a domestic base of customers and an ...

  • Copper - It's Back

    http://stocks.investopedia.com/stock-analysis/2010/Copper---Its-Back-FCX-SCCO-TGB-TCK-RTP-BHP1011.aspx
    ... Southern Copper (Nasdaq: SCCO) Southern Copper is a major producer with operations
    in ... here, though, and the company benefits from both low-cost operations and ...

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