Harey Davidson, economic scope & market power

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    Based on your analysis of Harley-Davidson to date & it's merger

  • Find ways to achieve economies of scope by leveraging assets and capabilities across business units.
  • Find ways to enhance market power by pooling and negotiating or vertical integration.
Apr 13th, 2015

Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relation to firms, which may seek to achieve economies of scale by becoming large or even dominant producers of a particular type of product or service. A distinction can be made between internal and external economies of scales. Internal economies of scale occur when a firm reduces costs by increasing production.

economies of scale can be achieved by geographic balanced portfolio of business , this is reffered to as diversification .

vertical integration is used as a way to enhance power ,it occurs when a firm owns business units that makes inputs and other business units i the same firm. a firm first confirms if a firm will provide competitive advantahe. this is done  by comparing what other organizations are doing.

Apr 13th, 2015

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