Competitive Cost Dynamics: The Experience Curve

Abstract

This is the first of three articles about some popular tools that have been widely used since the early 1970's to support strategic decision-making. The article below deals with the experience curve; subsequent articles will deal with the growth-share matrix and the industry attractiveness-business strength matrix. These tools have inspired a degree of controversy about their uses and limitations, issues that will be explored in this and the subsequent articles. This is the first of the tutorial articles we will be publishing in Interfaces. The objective of a tutorial article is to describe an important technique or an application area for Interfaces readers who are nonexperts in the field. Please write and let me know what area(s) you would like to see covered in tutorial articles (and who you would like to see write them) and what area(s) you would be prepared to cover in a tutorial of your own.

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