Industry requires economies of scale (Nike)

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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 Nike. … "Industry requires economies of scale (Nike)" has a significant impact, so an analyst should put more weight into it. This statement will lead to an increase in profits for this entity. "Industry requires economies of scale (Nike)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. "Industry requires economies of scale (Nike)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. "Industry requires economies of scale (Nike)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.

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