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Essay / Activity Ratio: An Analysis of Inventory Ratios and...
For the majority of businesses, gross profit margin will suffer as competition intensifies. If a company has a higher gross profit margin than is typical for its industry, it likely holds a competitive advantage in quality, perception, or brand image, allowing it to charge more for its products. We can see that Microsoft has relatively very high gross profit margins compared to its main competitors. Microsoft holds a competitive advantage in product costs thanks to its efficient production techniques, economies of scale and pioneering nature