Industry requires economies of scale (Smuckers)
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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 Smuckers. … "Industry requires economies of scale (Smuckers)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. "Industry requires economies of scale (Smuckers)" will have a long-term negative impact on this entity, which subtracts from the entity's value. |
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Threat of New Competitors: Industry requires economies of scale (Smuckers)
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 Smuckers.
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