overcapacity

overcapacity
The situation that arises when a firm or industry has greater capacity than the market demand. It may be caused by a temporary downturn in the economy or business cycle, overinvestment in capacity by existing or new entrants, or a permanent decline in demand for a product or service. In the last case, it is likely to be followed by restructuring throughout the industry, resulting in capacity being reduced through merger and closure in order to bring it into line with demand.

Big dictionary of business and management. 2014.

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  • overcapacity — o‧ver‧ca‧pa‧ci‧ty [ˌəʊvəkəˈpæsti ǁ ˌoʊvər ] noun [uncountable] MANUFACTURING when there are more factories, buildings etc that are able to produce a particular product or service than there is demand for it: • The banks are hurt by the industry… …   Financial and business terms

  • overcapacity — [ō΄vər kə pas′ə tē] n. excess capacity for production or service, in relation to the level of demand …   English World dictionary

  • overcapacity — [[t]oʊvə(r)kəpæ̱sɪti[/t]] N UNCOUNT If there is overcapacity in a particular industry or area, more goods have been produced than are needed, and the industry is therefore less profitable than it could be. [BUSINESS] There is huge overcapacity in …   English dictionary

  • overcapacity — /ˌəυvəkə pæsɪti/ noun an unused capacity for producing something ▪▪▪ ‘…with the present overcapacity situation in the airline industry the discounting of tickets is widespread’ [Business Traveller] …   Dictionary of banking and finance

  • overcapacity — noun Date: 1928 excessive capacity for production or services in relation to demand …   New Collegiate Dictionary

  • overcapacity — too many boats chasing too few fish …   Dictionary of ichthyology

  • overcapacity — /oh veuhr keuh pas i tee/, n., pl. overcapacities. capacity beyond what is normal, allowed, or desirable. [1925 30; OVER + CAPACITY] * * * …   Universalium

  • overcapacity — noun A capacity for the production of a commodity or product that is in excess of what is needed …   Wiktionary

  • overcapacity — o|ver|ca|pa|ci|ty [ˌəuvəkəˈpæsıti US ˌouvər ] n [singular,U] the situation in which an industry or factory cannot sell as much as it produces …   Dictionary of contemporary English

  • overcapacity — o|ver|ca|pac|i|ty [ ,ouvərkə pæsəti ] noun singular or uncount FORMAL a situation in which you have a larger amount of something than you can use or sell …   Usage of the words and phrases in modern English

  • overcapacity — n. more provision than is needed; ability to provide more than is necessary …   English contemporary dictionary

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