The principal strategy implication of the experience curve is that:
A)Firms should aim to drive volume growth through increasing their market shares.
B)To reduce costs firms should prioritize learning
C)Firms should concentrate on those products with the greatest sales potential
D)Firms that aim to become cost leaders need to focus on mass production and mass marketing

Question

Quizplus · Accepted Answer

The experience curve suggests that as firms increase their production volume, they gain experience, leading to lower costs. Therefore, driving volume growth through increased market share is a key strategy to leverage the experience curve.

The Principal Strategy Implication of the Experience Curve Is That