Perspectives on Experience

10,000 Industry Total accumulated experience Accumulated Volume million Antitrust approximately Association Boston Consulting AVERAGE PRICE Boston Consulting Group capital change in market characteristic competitive relationships constant dollars Consulting Group estimates cost advantage COST COMPETITOR cost decline cost differential cost-experience cost/volume Costs should go current profitability data of Electronics Derived from published dollar volume dominant producer economy effect Electronics Industry Association EXHIBIT experience curve effect experience curves experience doubles faster growth product growth rate high cost producer implications increase in market INDUSTRY ACCUMULATED VOLUME Industry Association Boston Industry Total Accumulated initial price integrated circuits inverse function investment leading producer logarithmic scales maintain market leader market position nonprice pattern physical volume Price and Cost price decline PRICE PER POUND published data reduce REVENUE PER UNIT shakeout SHORT TONS Slope 80 stable strategy substantial Total Accumulated Volume U.S. Production billion Unit Cost unstable Volume million pounds VOLUME MILLION UNITS