Quote Originally Posted by Dayuhan View Post
Companies hire workers, build plants, and expand into new business because they see increasing demand for their products. Why would a company build a plant and hire workers to produce goods if there's no market for the goods to be produced?
This happens quite often, actually. Companies develop new markets when their executives believe in a product.

I've experienced how almost ten companies struggled to survive in a market that was barely large enough for two of them, but they welcomed every opportunity to get even more entrepreneurs into their market.

The reason was that they focused entirely on developing the market. Every new 'competitor' was one more who marketed for the product category.



On a related note, I've done feasibility studies for small-scale industrial plants that had no chance of ever creating a profit without three shifts.
The entrepreneur was our client and wanted a reasonable study, so we told him he's got no chance and delivered our study. The study included a break-even scenario labelled "best case".
He took the best case scenario, talked to his bank (which wasn't able to read the text due to language barrier) and got the credit. He invested and got lucky with unusually high market prices (for a while).