Experience curve Flashcards
1
Q
what is it?
A
the more experience in producing a certain product, the lower its costs
2
Q
consequences of this curve:
A
most experience has cost advantage
often highest ms
experience is now a barrier to entry
ms is an objective
might use firms with experience to increase growth
3
Q
criticisms of curve:
A
market leaders complacent, experience may cause resistance to change, theory now outdated?
4
Q
examples
A
walmart , apple, dyson
5
Q
benefits
A
cpu lower, profit margins, investment into staff, retention
