Scaling Up Performance: The Impact of Economies of Scale in the Sportswear Industry
DOI:
https://doi.org/10.33423/jabe.v26i3.7148Keywords:
business, economics, sportswear industry, economies of scale, translog cost function, production function, cost elasticityAbstract
The sportswear industry has experienced substantial development as a result of the increasing demand for products that are both performance-oriented and lifestyle-oriented. This study examines the influence of economies of scale on the development and profitability of this dynamic sector. Despite the fact that industry leaders exhibit robust production efficiencies that are indicative of economies of scale, they face difficulties in managing the escalating operating and SG&A expenses. The study emphasizes the importance of stringent cost control measures and continuous innovation in order to maintain a competitive advantage and profitability in the sportswear industry amidst the changing market conditions.
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