Capacity
- Created by: Sophie.Mcintyre
- Created on: 02-02-17 09:59
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- Spare Capacity
- new competitors or new products entering the market
- eg, it has become very popular to open pizza restaurants in recent years - due to the increased demand. However this mean an increase in competition so therefore some places there is now excess capacity in the market so the average turnover for each outlet has began to fall.
- Fall in demand for the product due to the changes in taste or fashion
- Mcdonalds have been forced to close some of their restauants- fall in demand as ppl want more varied and healthy food.
- Seasonal demand
- eg. tourist industry must build facilities to accomodate visitors at peak times of the season.
- Over-investigating in fixed assets
- A merger or takeover leading to duplication of many resources and sites
- Two businesses providing the same products, so they are unlikely to be reaching full capacity???
- new competitors or new products entering the market
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