managing cost drivers, which are economies of scale, learning effects, capacity utilization, linkages (e.g. improvements in quality assurance can reduce after-sales service costs), interrelationships (e.g. sharing costs), integration (e.g. owning the means of distribution), timing (both first movers and late entrants can have low costs), policy decisions (e.g. controlling labour costs), location, and institutional factors (e.g. government regulations).