High sunk costs limit competition (Williams Sonoma)

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High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Williams Sonoma. … "High sunk costs limit competition (Williams Sonoma)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. "High sunk costs limit competition (Williams Sonoma)" 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. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "High sunk costs limit competition (Williams Sonoma)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.

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