- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
In The strategic planning process – part 1 technical article, in Porter’s five forces -> 5. The extent of competitive rivalry, I can not understand the following:
the cost structures if high – fixed costs prices are often cut to generate volume
Please elaborate it further. The structure of this sentence confuses me.
It means that if an industry has high fixed costs it will usually require a high volume of sales to generate enough contribution to first break-even then to make profits. Prices might be cut to win additional sales volume or to fiercely maintain current volume.