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Directing efforts towards this growth strategy allows the business to achieve economies of scales. As depicted in Exhibit I, even a growth of 100% in 2002 will allow the business to reach a break-even status. If considering possible additional costs reduction from suppliers and the potential of event a higher growth rate suggests that the business may become profitable as early as 2002.
Ibex's business segment is another potential leverage for increasing profitability. Ibex focuses on a niche market of premium ski clothing and its customer base includes high-end customers that are much less sensitive to price than the average fashion consumer...
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