Abstract
Big Lots Inc. can be taken as an example of a firm using a cost leadership strategy. This firm is the largest broadline closeout discount chain in the United States. It sells name-brand products which are less expensive than a discount retailer (35% less). Big Lots Inc. purchases its goods from foreign countries. The firm tries to decrease its costs in identifying various business / management approaches to satisfy the needs of its customers. Firms using this strategy use the value chain analysis to determine which part of its activity create value and which one doesn't create value. The firm may decide to get rid of some part of its activity in function of the result of this analysis as this will permit to reduce costs.
