economy of scale
Bigger means cheaper
Economy of scale is the cost advantage that comes from producing something in larger quantities—the more you make, the cheaper each unit becomes.
Fixed costs like machinery and facilities get spread across more products.
The company achieved economies of scale by consolidating its factories.
The plural form is more common: economies of scale.
Acquiring goods in volume
- wholesaleBulk sales to merchants
- discountsSubtractions from full price
- fixed costsExpenses unchanged by output
- overheadLocated directly above
procurement · bargaining · negotiation · purchasing · leverage · market power · price cuts · unit cost
Maximizing efficiency or performance
- streamliningMaking more aerodynamic or efficient
- automationSelf-operating system design
- standardizationImplementing uniform technical specifications
- leanLacking fat; incline
productivity · process improvement · throughput · capacity utilization · resource allocation · workflows · best practices · specialization
Increase in scope
- consolidationCombining into unified whole
- aggregationCombined collection of items
- market sharePercentage of sector sales
- diversificationExpanding into varied areas
acquisition · merger · conglomerate · network effects · critical mass
Large-scale standardized fabrication
- assembly lineSequential workstation manufacturing
- manufacturingIndustrial product creation
- factoryIndustrial production facility
- industrializationTransition to factory-based economy
output · machinery · batch processing · volume · plant · workforce · capital goods · vertical integration
bulk-buying
Acquiring goods in volume
- wholesaleBulk sales to merchants
- discountsSubtractions from full price
- fixed costsExpenses unchanged by output
overhead · procurement · bargaining · negotiation · purchasing · leverage · market power · price cuts · unit cost · marginal cost
optimization
Maximizing efficiency or performance
- streamliningMaking more aerodynamic or efficient
- automationSelf-operating system design
- standardizationImplementing uniform technical specifications
lean · productivity · process improvement · throughput · capacity utilization · resource allocation · workflows · best practices · specialization · division of labor
expansion
Increase in scope
- consolidationCombining into unified whole
- aggregationCombined collection of items
- market sharePercentage of sector sales
diversification · acquisition · merger · conglomerate · network effects · critical mass
mass production
Large-scale standardized fabrication
- assembly lineSequential workstation manufacturing
- manufacturingIndustrial product creation
- factoryIndustrial production facility
industrialization · output · machinery · batch processing · volume · plant · workforce · capital goods · vertical integration · production capacity
economy of scalediminishing returns
Reduced benefit from additional effort
economy, scale, economies, economic, economics, economical, economically, economist, economize