Industry requires economies of scale (EBay)

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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 EBay. … "Industry requires economies of scale (EBay)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. "Industry requires economies of scale (EBay)" 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. "Industry requires economies of scale (EBay)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.

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? Easily to overcome this disadvantage? Difficult to defend advantage? Difficult to overcome this disadvantage? Affected Investments YHOO-Yahoo Stock Research, Ratings, and Analysis GOOG-Google Stock Research, Ratings, and Analysis EBAY-eBay Stock Research, Ratings, and Analysis AMZN-Amazon Stock Research, Ratings, and Analysis MOVE-Move Inc Stock Research, Ratings, and Analysis

Threat of New Competitors: Industry requires economies of scale (EBay)
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 EBay.

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