Marketing essay
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[...] In vertical markets competitive advantage comes from economies of scale in fabrication of components; control over delivery, quality, and rates of technical change; reduced vulnerability to holdup by suppliers; and a quicker information flow. Vertical markets have limited direct competition and competitive threats do not exist. However, a trade-off exists, the vertical nature of the market reduces the competition for complementary products and drives slower adoption... [...] |
[...] Continuing on, indirect cost application bases in traditional systems tend to be financial, such as direct labour or perhaps direct material costs, while on the other hand, ABC indirect cost application bases tend not to depend on variables that do not have a financial implication. Variables used when determining an indirect cost application base in this instance tend to be number of parts in a product or hours of test time. (Hicks, 1999). [...] |
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