Case Study: Daiso Cost-Leadership Strategy

Daiso, a popular Japanese retail company, was founded in 1977 by Hirotake Yano. The company started as a humble store in Hiroshima, Japan, offering household items and other products at a low fixed price of 100 yen (approximately $1). Over the years, Daiso expanded its presence both within Japan and internationally, becoming known for its cost-effective business model.

Daiso utilizes a cost leadership strategy to differentiate itself in the retail market. The company focuses on maintaining a low-cost structure throughout its operations, allowing it to offer a wide range of products at affordable prices. Here are some key aspects of Daiso’s cost leadership approach:

Daiso’s cost leadership strategy has allowed the company to capture a significant market share in Japan and expand its operations globally. By offering a wide variety of products at affordable prices, Daiso appeals to price-conscious consumers who seek value for their money. It’s important to note that while Daiso’s primary focus is on cost leadership, the company also emphasizes product quality and customer satisfaction. This combination of affordability and value has contributed to Daiso’s success and popularity both domestically and internationally.