“The theory of the experience curve is that an organization may increase its profitability through obtaining greater familiarity with supplying its products or services to customers.” This reflects the view that profitability is solely a function of market share. Discuss the extent to which the application of the experience curve theory can help organizations to prolong the life cycle of its products and services.

“The theory of the experience curve is that an organization may increase its profitability
through obtaining greater familiarity with supplying its products or services to customers.”
This reflects the view that profitability is solely a function of market share.
Discuss the extent to which the application of the experience curve theory can help
organizations to prolong the life cycle of its products and services. (10 Marks)

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