Excess Capacity at Proton

We have learnt about excess capacity in monopolistic competition and other imperfectly competitive market structures.

What is excess capacity then?? Revision

In this article, it was mentioned that Proton, our national car maker is running on 40% spare or excess capacity, meaning that Proton is operating at 40% less than the optimum (ideal) capacity. A cause for concern no doubt.

"Some of the trucks load to just to 60%," he says, "compared with 90% at Toyota. We're paying for air." Zainal admits that Proton's three assembly lines have about 40% spare capacity.

What could be the reason(s) for the fall in sales of Proton cars??

BMW ( in conjunction with the World Cup fever)

Barriers to entry in the form of technical know-how - One good example is the company BMW (even though BMW is not a monopoly) in the automobile manufacturing.

In the motoring world, certainly everyone has heard of this name before.
It is synonymous with supreme German precision in engineering , incomparable engine performance, sublime quality finishings and ultimate driving experience. No wonder its motto is "Ultimate Driving Machine"

However, very few people know what the acronym BMW really stand for??
Do you know what BMW stands for??
One student said : Business Motor Wehicle ( very creative indeed!!)
Maybe it is more applicable for IBM (International Business Machines)
Well, BMW really stands for Bayerische Motoren Werke in German or Bavarian Motor Works in English.
The company was founded in Bavaria, that's why it contains the word 'Bayerische', someone noted that it is similar to the world famous football club Bayern Munich..yes, the club shares the same origin with BMW whereby they are both are formed in the city of Munich, Germany.

The blue-and-white logo BMW still uses (illustrated above right) represents the blue and white checkered flag of Bavaria and also indicates the origin of BMW by symbolizing a spinning white propeller on a blue-sky background.

For more information
Read this link for everything about BMW

http://en.wikipedia.org/wiki/BMW


Barriers to Entry - BMW's techincal know-how in automative engineering had become barriers to entry for new automative firms intending to join the industry. What say you???