ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Instruments

September 20, 1969 the expanded capacity as it is today. The expansion of capacity from 22 million to about 37 million tyres is unlikely to create a surplus as demand is expected to increase to about 40 million tyres in the next few years. The entry of these large units might affect the market share of medium- sized units because the new producers can make inroads into their established market areas. Their profitability would be squeezed especially as they move out of their established market areas into a market where price competition will be more important. They are already undergoing a squeeze in the market for tubes, where they are on the defensive against price competition from small units. Medium-sized units in the bicycle tyre industry will not be in an enviable position in the near future.

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