Capital Intensive
Capital intensive refers to a type of business or industry that requires a large amount of capital investment in order to operate and grow. This means that companies in capital-intensive industries rely heavily on expensive machinery, equipment, buildings, and other physical assets to produce goods or services.
Examples of capital-intensive industries include manufacturing, mining, telecommunications, and transportation. In these industries, companies must invest significant amounts of money in order to purchase and maintain the necessary infrastructure to operate efficiently.
One of the key characteristics of capital-intensive industries is high barriers to entry. Due to the large amount of capital required to compete in these industries, new entrants may find it difficult to establish themselves and compete with established players.
Overall, capital-intensive industries tend to have higher fixed costs and lower variable costs, meaning that companies must produce a high volume of goods or services in order to achieve economies of scale and remain profitable.
- Manufacturing
- Mining
- Telecommunications
- Transportation
For more information on capital-intensive industries, you can visit Wikipedia.