Depict the Expansionist Strategy Graphically as a Plot of Capacity

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The Answer is <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1252/11ea308e_479c_3483_b114_95e3bc5a2587_TB1252_00.jpg" alt="  The expansionist means large, infrequent jumps in capacity. Several factors favor the expansionist strategy. Expansion can result in economies of scale and a faster rate of learning, thus helping a firm reduce its costs and compete on price. This strategy might increase the firm's market share or act as a form of preemptive marketing. By making a large capacity expansion or announcing that one is imminent, the firm can preempt the expansion of other firms. These other firms must sacrifice some of their market share or risk burdening the industry with overcapacity. To be successful, however, the preempting firm must have the credibility to convince the competition that it will carry out its plans and must signal its plans before the competition can act." class="answers-bank-image d-block" rel="preload" > The expansionist means large, infrequent jumps in capacity. Several factors favor the expansionist strategy. Expansion can result in economies of scale and a faster rate of learning, thus helping a firm reduce its costs and compete on price. This strategy might increase the firm's market share or act as a form of preemptive marketing. By making a large capacity expansion or announcing that one is imminent, the firm can preempt the expansion of other firms. These other firms must sacrifice some of their market share or risk burdening the industry with overcapacity. To be successful, however, the preempting firm must have the credibility to convince the competition that it will carry out its plans and must signal its plans before the competition can act.

Depict the Expansionist Strategy Graphically as a Plot of Capacity

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Depict the Expansionist Strategy Graphically as a Plot of Capacity

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