Table of Contents
- 1 Which techniques improve economies of scale?
- 2 Which three factors did Michael Porter point to in his explanation of why some nations achieve international success in particular industries?
- 3 What are advantages of economies of scale?
- 4 What are the factors that contribute to economies of scale?
- 5 How would Experts reply to the question is Porter’s theory correct?
- 6 What is competitive advantage according to Porter?
- 7 What does variable cost with economies of scale mean?
Which techniques improve economies of scale?
Which techniques improve economies of scale? employing sales specialists, introducing an assembly line to maximize product.
Which three factors did Michael Porter point to in his explanation of why some nations achieve international success in particular industries?
Porter argues that any company’s ability to compete in the international arena is based mainly on an interrelated set of location advantages that certain industries in different nations posses, namely: Firm Strategy, Structure and Rivalry; Factor Conditions; Demand Conditions; and Related and Supporting Industries.
How do we know that it has achieved economies of scale?
When a company reduces costs and increases production, internal economies of scale have been achieved. External economies of scale occur outside of a firm, within an industry. When external economies of scale occurs, all firms within the industry benefit.
What are advantages of economies of scale?
Increased profits – Economies of scale lead to increased profits, generating a higher return on capital investment and providing businesses with the platform to grow. Larger business scale – As a business grows in size, it solidifies and becomes less vulnerable to external threats, such as hostile takeover bids.
What are the factors that contribute to economies of scale?
Major factors causing economies of scale are:
- Specialization: Firms producing at a large scale employ a large number of workers.
- Efficient Capital: The most efficient machines and equipment are based on cutting edge technology and have high production capacity.
- Negotiation Power:
- Learning:
How do you plan to gain competitive advantage over your competitors?
6 Ways to Gain Competitive Advantage
- Create a Corporate Culture that Attracts the Best Talent.
- Define Niches that are Under-serviced.
- Understand the DNA Footprint of Your Ideal Customer.
- Clarify Your Strengths.
- Establish Your Unique Value Proposition.
- Reward Behaviors that Support Corporate Mission and Value.
How would Experts reply to the question is Porter’s theory correct?
How would experts reply to the question, “Is Porter’s theory correct?” We do not know. It has not been subjected to empirical testing. A country which has related and supporting industries that spill over into other industries can have a _____ on that country’s competitive advantage.
What is competitive advantage according to Porter?
Competitive advantage is the leverage a business has over its competitors. This can be gained by offering clients better and greater value. Michael Porter defined the two ways in which an organization can achieve competitive advantage over its rivals: cost advantage and differentiation advantage.
What is marketing economies of scale?
Glossary -> M. An advantage of large firms, which have a lower unit cost for advertising and promotion than small firms.
What does variable cost with economies of scale mean?
Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output. Economies of scale also result in a fall in average variable costs. One of the most popular methods is classification according (average non-fixed costs) with an increase in output.