Experience Curve Analysis

Definition

Experience curve analysis involves the application of the experience curve effect, to understand the following:

1. how the components of the total cost of a company’s product are affected by cumulative experience
2. the relationship of industry experience and average industry prices and costs
3. how competitive cost comparisons relate to current costs of direct competitors to their cumulative experience[1]

See also

• Cost-oriented strategy

 

References

1. ^ American Marketing Association, AMA Dictionary.