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Economies of scope |
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Economies of scope Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| in economics, is the growth of a business enterprise through the acquisition of similar companies, in the hope of achieving economies of scale or economies of scope. Secondly, developments in web-based technologies mean that economies of scope in publicity and other marketing functions can be exploited effectively only by being part of a larger organisation. By moving into related markets, it is possible for a firm to utilize its excess capacity to achieve both economies of scale and economies of scope (Teece, 1980, 1982). |
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