For most firms,a niche cost-leadership strategy is difficult to implement and sustain because scale is so closely linked to cost advantage.

A niche cost-leadership strategy requires achieving a cost advantage over competitors, which is typically linked to achieving economies of scale. However, operating in a niche market may limit the firm's ability to achieve the necessary scale to sustain a cost advantage. As a result, implementing and sustaining a niche cost-leadership strategy can be challenging for many firms.