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As competitors catch up on our low cost processes, it is important to stay ahead of them to maintain the low cost advantage. California is a technology hub in the United States, which is also a reason for California having the lowest ATC. If the company is able to stay ahead in process technology, it can maintain the low cost advantage.
Being the low cost provider of fresh orange juice comes with risks. The largest risk the company faces is competition reaching the cost levels of our company thus losing our competitive advantage. This has caused us to come up with a contingency plan if this occurs...
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