By Sigrun WinklerOn Apr 11, 2019 Free Resume
Information about the ecosystem and competition in an industry constitutes a significant advantage. For example, knowledge about component sourcing and supplier pricing can make or break the market for certain companies.
Limited to zero profit margins means that companies will have less cash to invest for expanding their production capabilities. An expansion of production capabilities could potentially bring down costs for consumers and increase profit margins for the firm.
In a perfectly competitive market, however, such moats do not exist. Information is equally and freely available to all market participants. This ensures that each firm can produce its goods or services at exactly the same rate and with the same production techniques as another one in the market.
94 out of 100 based on 610 user ratings
266 Facebook Shares
136 Twitter tweet
358 Pinterest Pins
164 Google+ Shares
156 Thumblr Shares
68 Linkdkn Shares
© 2011 - 2019 Reachforyou.org. All rights reserved.