Learning curves and economies of scale are two of the most underappreciated concepts in strategic management. In some ways they're a bit like the magic. They create profit where none existed and reduce costs without additional capital. Whether you are trying to use economies of scale and learning curves to build competitive advantage, or figure out exactly why your firm is at a disadvantage, it's important to understand the basics of how these phenomena impact costs and competition.This book takes you through the concepts, using concrete examples and illustrations, then explores their roles in strategy. Based on nearly 20 years of teaching these concepts to MBA and undergraduate students, this book provides information you need, using the tools that have proven most conducive to learning and understanding. It will take you beyond simple understanding to strategic applications.
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