Industry requires economies of scale (Starbucks Coffee)

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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 Starbucks Coffee. … This qualitative factor will lead to a decrease in costs. "Industry requires economies of scale (Starbucks Coffee)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. "Industry requires economies of scale (Starbucks Coffee)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value.

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