Wednesday, May 25, 2011

5.5 Long Run Costs and Economies of Scale




Kim's Vanity
Custom Jewellery Since 2011
Kim's Vanity is a petite jewellery shop located in Calgary, Alberta which specializes in made to order necklaces, bracelets and earrings.
The shop is small, with room for only the finest beads, crystals, pearls, sterling silver, and gold available today.
Kim's Vanity targets the smaller scale (if growing) market of descerning women wishing to wear only the highest quality jewels.
Costs of Production:
Long-Run:
Gold and Silver
Diamonds
Precious Stones
Short-Run:
Chain links
Clasps
Beads
Crystals
Wire
Tools
Fixed:
Shop Rent
Utilities
Postage
Website.
Kim's Vanity in comparison to Tiffany & Co:
What size is Tiffany & Co Plant?
Extremely large, built to cater to a global market.
More than half of Tiffany's 2010 sales were made outside the USA, clearly demonstrating the power of a global expansion program that has provided a platform for robust and sustainable growth.
Tiffany has expanded since 2010, with several macro economic challenges facing not only them but the world as a whole.

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