Author Topic: Excess Capacity  (Read 2266 times)

AYC

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Excess Capacity
« on: March 15, 2017, 09:24:49 PM »
What do you recommend doing with excess capacity? I bought a lot of used capacity and have built some as well so my company has 20% of the total capacity of the industry, about 3 times more than every other individual company we are up against. I tried to make a profit in the PL market last time, since there was little supply to it, but I was wondering what strategies I should consider to make the most of it. I know you have mentioned that aggressive tactics such as undercutting the others is not a sound strategy in the long term, but I would like to know how I'd be able to eliminate my closest competitors by leveraging the excess capacity. Any thoughts on dealing with competition or strategies for excess capacity?

Also is it ever a sound strategy to leave any capacity unused?

WinBusinessStrategyGameTips

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Re: Excess Capacity
« Reply #1 on: March 15, 2017, 10:34:13 PM »
Theoretically you'd use the capacity in PL, unused capacity is not a good idea.

However, if you expanded to the extent it is detrimental, you may have to do the unthinkable and sell some, even if as temporary relief.
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