Economies of Scale : An Analytical Framework for Assessment of a Firm's Competitive Advantage

Economies of scale is a widely discussed concept. In this paper, we discuss a differentiated analytical process for evaluating cases when economies of scale leads to competitive advantages that are sustainable. Through the example of Shoprite Holdings, we present an analytical process for effectively evaluating economies of scale; a process driven by size of the industry in relation to the efficient scale, steepness of cost differentials, ancillary competitive advantages, and market structure