Grubsgua, Inc.
Economies of Scale Lesson
Executive Summary
|Contact Information |BUSINESS |
| |Grubsgua, Inc. is the leading U.S. chain of discount department stores. Our company’s goal is to provide low cost and |
|Jason Thompson |quality merchandise to the global consumer. |
|Marketing Manager | |
|Grubsgua, Inc. |ECONOMIES OF SCALE DEFINED |
| |The efficiency gained in a production process, as the rate of production is increased. By sharing the costs of |
|Industry |production operating costs and the cost per unit produced, costs are decreased over time. |
| | |
|Retail |WHY ECONOMIES OF SCALE IS VITAL TO GRUBSGUA? |
|Discount Department Stores |As a dominant player in retailing, Grubsgua’s size provides it with enormous efficiencies that it uses to keep costs |
| |low. |
| |...