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From 1997 to 2007 the home appliance industry has seen 13 billion dollars worth of growth. This would indicate that the industry is seeing a normal rate of growth. The demand for Household appliances is driven by growth in consumer income and by home sales (See Appendix B). The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract...
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