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Benefits of Firm Specialization


Explain why a firm would want to specialise in producing only one product.


Market Structures and Competition

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I. 🍃Introduction
- Definition of specialisation in business
- Importance of specialisation in business

II. Advantages of specialisation in business
- Increased efficiency and productivity
- Achieving economies of scale
- Decreased cost of production
- Higher output and profits
- Increased global demand and revenue
- Resources well-suited to the product
- Improved reputation and quality of the product

III. Examples of specialisation in business
- Manufacturing companies
- Service-based companies
- Agricultural companies

IV. Challenges of specialisation in business
- Limited product range
- Dependence on a single product or service
- Vulnerability to market changes

V. 👉Conclusion
- Recap of the advantages and challenges of specialisation in business
- Importance of finding the right balance between specialisation and diversification.

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