Economies of Scale

One of the motivations for businesses to combine or expand is to benefit from economies of scale including potentials for:

• Marketing economies ~ more services & products can be marketed for lower incrementing costs
• People economies - more people more productively over more work to be done
• Skill & talent economies - higher price skills and talents applied over a broader base
• Place economies - more efficient and effective use of places; and better deals
• Purchasing economies - more stuff for better pricing
• Tech economies - more and better tech spread over more tech opportunities
• Service & product development economies - development and research costs spread over bigger base
• Professional economies - professional services benefitting larger operations
• Financial economies - costs spreading; better deal making; cash management benefits