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150: 2024 Yearly Themes
Cortex
Economies of Scale and Product Positioning in the Market
Economies of scale lead to advantages in producing a large number of chairs, resulting in higher individual unit costs for smaller productions. This pushes companies towards either mass production with narrow profit margins or the production of a small number of high-quality chairs. This phenomenon resembles a 'Cortex brand effect', leading companies positioned in the middle of the market to be pushed towards one end or the other over time.
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