أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
ECONOMIES OF SCALES
If you were to manufacture and sell a car to me, it would be impossible for you produce good quality, sell it at a competitive price, and still make profit.
However, if you were to manufacture a million cars, then it will be easier to maintain good quality, lower your margin to make the price low, and end up making a lot of profit.
This is called 'Economies of scales'. Every business wants to reach a level of scales so high that their costs are significantly lowered. This way, they can concentrate on Quality. Once a business reaches Economies of scales in its industry, it becomes very difficult for any competitor to compete efficiently.
This is why the commercial aircraft manufacturing industry is dominated by Boeing and Airbus. Those2 companies have reached that level where they can cook the magical recipe in bulk.
