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. "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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