Topic > Digby Strategic Model - 1149

And we will purchase capacity when plant utilization is above 90%. This will expand the size of the company and have a positive impact on economies of scale. Consisting of high-end and sized products transferred to low-end and mainstream, we have multi-product in targeted segments. “Increased firm-level capability increases a firm's productivity across all products, which induces a positive correlation with a firm's intensive and extensive margin” (Bernard, Redding, and Schott 2006). This means that with effective business strategy and management, companies can increase sales of all products within the segment. With a broader product profile for mainstream and low-end products, it works to generate larger market shares. Referring to graphs 4 and 5, Digby sold double the product units than its main competitor, Baldwin, having Daze and Dixie in its traditional segment, which makes its market share in the segment double that of Baldwin. The increase in sales and market share demonstrates the correct implication of