Economies of Scale

Economies of scale arise from savings that are achieved as the volume of production increases – the more you make of a product, the lower the cost per item. 

This collection of articles explores economies of scale – key sources and the role that they play in organizational strategy. 

Latest Articles on Economies of Scale

Related concept: Cost Leadership

Economies of scale are one of the primary approaches for achieving cost leadership.

Cost leadership: Competing on the basis of price

Cost leadership is one of the primary bases for competing. By focusing on reducing the cost of your operations, you can charge a lower price for your goods or services, and in turn capture the most cost-conscious customers. 

Cost leadership: Competing on the basis of price

Cost leadership is one of the primary bases for competing. By focusing on reducing the cost of your operations, you can charge a lower price for your goods or services, and in turn capture the most cost-conscious customers.