Last man standing
You put high prices to make demand match your production capabilities and make your competition not care about their efficiency. Then you invest all the profits in your efficiency, cut prices and observe demand surge and problems of your competitors realising that efficiency was in fact critical.
- Recent transition from Product to Commodity
- Price Elasticity of Demand: much greater consumption can be driven by lower prices
- Scale efficiencies are apparent: Cost reductions are available with proper investment
- Access to necessary capital for needed investments