It is possible for a company to be the lowest-cost producer in its industry and simultaneously have an output that is the most valued by customers. Discuss the statement.. Management

In fact, it is the most beneficial position for a company to deliver a product that is the most valued by customer and at the same time, produce it at a lower price (compared to its rivals). This situation boils down to the understating of the relationships between value, pricing, demand and costs. When the company utilizes its valuable, rare, limitable resources to deliver a product that it more value by customer than a product offered by a competition, it will initially cost more money. But it in the long run, it may boost the profitability and allow the company to gain a completive advantage. The high demand for the product is created when customers value the product more than one of the rivals. When the company enjoys high demand, it can achieve enormous economies of scale that drive down the average unit cost. Consequently, the company is able to charge a higher price (a result of the highest utility to customers & product differentiation) and has lower costs than rivals. The case of Apple perfectly illustrates these dynamics.