Silly Corporation! Running costs up to the point that they are no longer competitive!
Silly Corporation! Running costs up to the point that they are no longer competitive!
More like silly Competitors who can profitably make a product forcing prices down for optimum market share.
Precisely the mechanism that assures that any business cost savings are applied to optimizing volume through pricing for profitibility, over those who will not or cannot follow suit and ultimately go the way of the dinosaur if the do not change their business models.
Competition is the reason that a marginally run business fails. A profitable company driving to lowest price for optimal marketshare & profit drives the losers out of the market.
Competiton is why prices will always move to the bottom dollar in price that sustains profit for the successful and drive the inefficient, whence unsuccessful, out.
The successful will grow and expand in both sales and production base as the uncompetitive drop out for lack of adabtibility.