Analysis
The Saline Salt Company production process was simple. Their process involved extracting salt from six tanks of 900,000 cubic feet of seawater which could only be held on a large plot of land. As land becomes more valuable and rarer, expansion of the existing method becomes very difficult. Saline Salt Company could not compete with other companies that were producing larger amounts of salt in shorter amounts of time.
Saline Salt Company did not expand as the needs of their customers grew. Silver Salt Granulating Company was Saline Salt Company’s first and only customer who bought every product they produced for several years. When Silver Salt Granulating Company developed a greater demand, they were obligated