Steel is a high fixed cost industry.  Steel companies have capital investments such as factories and large machinery.  Companies in the travel industry are different.  They require only office spaces, office supplies, etc.

Other high fixed cost companies are airlines, automobile manufacturers, and pharmaceutical companies.

 

Any of these industries require large amounts of capital investments or R&D expenditures (research and development expenses).

 

 

 

 

 

 

 

 

 

 

 

 

On the other hand, the industries of low fixed costs are online stores, personnel placement agencies, applications, etc.  It’s been said these industries do not require large amounts of capital investments in general.

 

In the case of Amazon, it is conducting large amounts of distribution investments.  If online stores are managed by individuals, they require nearly no fixed costs.

It is also same in the case of personnel placement agencies.  Their assets are humans, therefore they do not require large capital investments.  In the case of producing applications as well, they do not require large amounts of costs.  If you take this business model, it is relatively easy to adjust by reducing a cost even if the sales were decreasing.