Industry requires economies of scale (Porters Five Forces Analysis)

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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 Porters Five Forces Analysis. … This statements will have a short-term positive impact on this entity, which adds to its value. "Industry requires economies of scale (Porters Five Forces Analysis)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. This qualitative factor will lead to an increase in costs.

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