How did SpaceX achieve dramatically lower rocket launch costs compared to traditional suppliers?

SpaceX revolutionized the space industry by developing an innovative cost reduction framework that challenged traditional aerospace economics. While Russian suppliers quoted $80 million for rocket launches, Elon Musk's company achieved the seemingly impossible by launching rockets at just $6.7 million—nearly 92% lower than conventional costs. This breakthrough wasn't accidental but resulted from a systematic approach to rocket development that fundamentally reimagined manufacturing processes and supply chains. The dramatic cost reduction stunned established industry players like NASA and Boeing, who had operated under traditional high-cost models for decades. SpaceX's success transformed the company from an ambitious startup into a dominant force in space innovation, proving that disruptive thinking and strategic frameworks could overcome seemingly insurmountable industry barriers.