Experience curve

Question 1

what is it?

Answer 1

the more experience in producing a certain product, the lower its costs

Question 2

consequences of this curve:

Answer 2

most experience has cost advantage
often highest ms
experience is now a barrier to entry
ms is an objective
might use firms with experience to increase growth

Question 3

criticisms of curve:

Answer 3

market leaders complacent, experience may cause resistance to change, theory now outdated?

Question 4

examples

Answer 4

walmart , apple, dyson

Question 5

benefits

Answer 5

cpu lower, profit margins, investment into staff, retention