Industry requires economies of scale (Lego Group)

Home Five Forces Analysis Index Lego Group - Five Forces Analysis Industry requires economies of scale (Lego Group)

Last Updated by Anonymous | Update This Page Flag this page Delete This Page

Add New Five Forces Analysis | Feedback

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 Lego Group. … This qualitative factor will lead to a decrease in costs. "Industry requires economies of scale (Lego Group)" will have a long-term negative impact on this entity, which subtracts from the entity's value. "Industry requires economies of scale (Lego Group)" 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

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

---

If you believe that this point is inaccurate, please flag this page to notify administrators and moderators.
Flag this page