Industry requires economies of scale (Starbucks Coffee)

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Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Starbucks Coffee. … This qualitative factor will lead to a decrease in costs. "Industry requires economies of scale (Starbucks Coffee)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. "Industry requires economies of scale (Starbucks Coffee)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value.
Five Forces Analysis Survey

This statement has a significant impact?

Has a positive impact over the long term?

Has a negative impact over the long term?

Has a positive impact over the short term?

Has a negative impact over the short term?

This statement leads to reduced costs?

This statement leads to increased costs?

This statement leads to increased profits?

This statement leads to decreased profits?

Easy to defend this advantage?

Easy to overcome this disadvantage?

Difficult to defend advantage?

Difficult to overcome this disadvantage?

Affected Investments