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Showing posts with label Example of porter's five forces model. Show all posts
Showing posts with label Example of porter's five forces model. Show all posts

Thursday, 31 May 2012

Porter's Five Forces Model Example


Threat of New Entrants / Entry Barriers

Economies of Scale
The trend continued towards dedicated manufacturing facilities combining product line production in fewer large plants to gain economies of scale. All the major home appliances manufacturers were heavily engaged in renovating and building production facilities to gain economies of scale, improve quality, and reduce labor and material costs. So it would be a high barrier for the new entrant.