Copyright 2002, Professor Jerome M. Katrichis



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Sports Authority Example

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F. Cost Structure of the Industry

The cost structure for sporting goods is a set market on fixed costs primarily due to occupancy and labor costs.  Its primary focus is on the amount of volume they need to produce to cover their fixed costs.  Thus, since they are high in fixed costs, they have a high market share, and marketing plays a very large and very important role in their industry.  Because of this, sporting goods furthermore have more incentive to produce large amounts of volume to cover their fixed costs.





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