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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1233 |
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This absolute cost advantage can mean greater profits and revenue.
6. IT investment can boost production processes (2). Information systems allow a company flexibility in its output level. Michael Porter claims that economies of scale are a barrier to entry, aside from the absolute cost advantages they provide...
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This is because, a company producing at a point on the long-run average cost curve where economies of scale exist has the potential to obtain cost savings in the future, and this potential is a barrier to entry.
7. Implementing IT experience can leverage learning curve advantages. As a company gains experience using IT systems, it becomes familiar with a set of best practices that are more or less known to other firms in the industry...
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