Low Cost is a goal every organization must have. Low cost must by related to your product/service. Some organizations compete on high quality, others compete on having new products/services before their competition, and others compete on low cost.

You would expect fine leather seats in luxury car and cloth seats in most small sub-compact cars. Fast food restaurants have different cost structure than 5 star restaurant. 

Each must strive to obtain low cost:

• in relationship to their type of product or service
• by eliminating waste

Techniques like Activity Based Costing and Reengineering help organizations achieve low cost.