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Early in the history of her start-up business, Giulia Ferrato was presented with an opportunity to purchase the manufacturing company that supplied her piton product.
Early in the history of her start-up business, Giulia Ferrato was presented with an opportunity to purchase the manufacturing company that supplied her piton product. As we discussed in class, this opportunity would significantly affect her cost structure, replacing much of the cost of purchasing pitons with the cost of manufacturing pitons. Other than the change in the breakeven point, what would be the key change in her cost structure, and how would this change affect the nature of the TenAlpina business? Put another way, what would Giulia need to understand about shifting to this new structure in order to successfully manage the profitability of TenAlpina
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