Comparing

#laborintensive #capitalintensive #capital #businesscapital #businessproductivity #businessmodel
What is labor intensive?
Unlike capital-intensive, Labor intensive means that human workers mainly produce products. Machines and special tools may be used too, but overall it requires human creativity and effort to produce the products.
Why produce in a labor-intensive way?
- you can serve much more customized products;
- you have less initial costs with machinery;
- you can rely on the initiative and experience of your employees to solve several delicate problems.
Disadvantages of using this production method:
- quality of the products delivered might vary as a result of the degree of expertise each of our employees has;
- the fact that skilled workers involve costs for the business such as special training, higher wages and time.
What is capital intensive?
Capital intensive is when machines and robots mainly produce products, meaning the initial outlay and maintenance, will be very high.
Why produce in a capital-intensive way?
- you will encounter lower costs with employees (wages, salaries);
- the quality of each product can be standardized;
- machinery will work for you 24/7 without holiday or maternity leave.
The downside of this operations model is that:
- it might be extremely difficult to meet orders that need to be customized;
- you will need substantial capital in order to purchase and operate all machinery needed;
- in case of a breakdown the entire production capacity might be affected.
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[@samriddhaguha6377]

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[@catalinbuzdea5910]

Nice video, thank you!

[@alextacdol5577]

Thank you sir Darius, this video helped me alot in my report about labour and capital intensive production.. sir, how is economy of scale affects the labour intensive?

[@mihaipatrus4416]

Great video and interesting information!!