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| Author: | Lieberman, M.B. |
| Title: | Strategies for capacity expansion |
| Journal: | Sloan Management Review
1987 : SUMMER, VOL. 28:4, p.19-27 |
| Index terms: | CAPACITY CAPACITY UTILIZATION STRATEGIC PLANNING |
| Language: | eng |
| Abstract: | The problem of overcapacity is presented on examples of semiconductor memories, oil tankers, crude oil and hotels. It is analyzed why these industries are plagued by overcapacity how is management to ensure that its next investment decision would not set off a market share war. Four expansion strategies are presented and useful advice to managers deciding on capacity expansion strategies are offered. Major factors to consider include the firm's market share, number of competitors, tolerance for risk, and extent of differentiation. |
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