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
Diseconomies of scale: How efficiencies can start to decline with scale
This article explores the concept of diseconomies of scale – with examples of the factors that can lead costs to increase as volume increases.
Economies of scope from increased purchasing volumes
Will diversifying allow you to gain better bargaining power with your suppliers? This article explores the possibilities of economies in purchasing from increasing the scope of the firm.
Competing against a firm with economies of scale
How do you compete if the firm you are competing against has much larger economies of scale? This article explores strategies for competing against scale economies.
The difference between economies of scale and diseconomies of scale
This article explores two related, concepts – economies of scale and diseconomies of scale – with examples of the differences.
Economies of scale vs. economies of scope: Explaining the differences
Economies of scale and economies of scope are two related – but distinct – concepts. This article explores the differences.
Why economies of scale can act as a barrier to entry
This article unpacks how economies of scale can act as a barrier to new firms entering a market, with examples of disadvantages new firms face.
Economies of Scale: Examples of how large production volumes reduce costs
This article explores examples of some of the primary cost savings that come from increased volumes.
The difference between economies of scale and learning effects
This article explores the differences between economies of scale and learning effects, as well as how scale can also lead to greater cumulated learning.
Achieving economies of scale: Steps to obtain savings from high production volumes
This article explores key approaches for achieving economies of scale – the steps that firms kneed to take to gain savings associated with increased production volumes.
Achieving economies of scale: Steps to obtain savings from high production volumes
This article explores key approaches for achieving economies of scale – the steps that firms kneed to take to gain savings associated with increased production volumes.
Economies of scope from increased purchasing volumes
Will diversifying allow you to gain better bargaining power with your suppliers? This article explores the possibilities of economies in purchasing from increasing the scope of the firm.
Economies of Scale: Examples of how large production volumes reduce costs
This article explores examples of some of the primary cost savings that come from increased volumes.
The difference between economies of scale and diseconomies of scale
This article explores two related, concepts – economies of scale and diseconomies of scale – with examples of the differences.
Diseconomies of scale: How efficiencies can start to decline with scale
This article explores the concept of diseconomies of scale – with examples of the factors that can lead costs to increase as volume increases.
Economies of scale vs. economies of scope: Explaining the differences
Economies of scale and economies of scope are two related – but distinct – concepts. This article explores the differences.
Why economies of scale can act as a barrier to entry
This article unpacks how economies of scale can act as a barrier to new firms entering a market, with examples of disadvantages new firms face.
The difference between economies of scale and learning effects
This article explores the differences between economies of scale and learning effects, as well as how scale can also lead to greater cumulated learning.
Competing against a firm with economies of scale
How do you compete if the firm you are competing against has much larger economies of scale? This article explores strategies for competing against scale economies.
Related concept: Cost Leadership
Economies of scale are one of the primary approaches for achieving cost leadership.
Sources of cost leadership: Examples of reducing costs
Examples of approaches for achieving cost leadership, Learn the key approaches for cost leadership and reducing the cost of your operations.
Sources of cost leadership: Examples of reducing costs
Examples of approaches for achieving cost leadership, Learn the key approaches for cost leadership and reducing the cost of your operations.