Advanced The theory of the experience curve is that an organisation 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.

Requirement:

Discuss the extent to which the application of experience curve theory can help an organisation to prolong the life cycle of its products or services.

(20 marks)

CIMA Stage 4 Strategic Management Accounting and Marketing