The main problem with the authors reasoning is the weak analogy he develops between the two processing industries. One fails to see any logical connection between the two and the author makes no effort to show the connection either. The two industries are too dissimilar to be compared. For example: frozen food industry faces problem of storage, transportation, contamination etc; no similar problems are observed in the film-processing industry. Even the markets for the two differ widely. The argument could have been strong if the author could show the missing connection or if he had compared the frozen-food industry with a similar industry.
Also the author fails to recognize that its not the number of years of experience that matters; what actually matters is what is learnt over all those years.
An industry may mature over a couple of years, yet another may remain stagnant even after 25 years. The color-film industry people may have tremendous learnings that may have contributed to the cost-reduction; but the report shows no evidence of Olympic Foods doing the same.
Another point that the author misses completely is that there may be factors other than just the expertise and experience gained over the mentioned period. For example: developments in technology may have resulted in the cost-reduction for the color-film processing industry. The author could have strengthened his stand by showing that its merely the increased efficiency that has brought costs down. He could have also chosen to highlight similar developments in the food-processing industry too.
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