Experience Economies Concept

Experience economies represent earnings, in terms of production costs, that the organizations obtain with the increase of the accumulated quantity produced and with the passing of time. These earnings derive, like the name indicates, from the experiences that the organizations accumulate allowing them to make the management and the manufacturing processes more efficient and allowing them to better select the productive factors used. In certain activity sectors the experience economies assume such relevance that forms extremely strong entry barriers, preventing the entrance of other companies in this sector.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.