Scope economies

Scope economies refer to the cost savings a company achieves by producing multiple different products or services together, rather than separately. When a business offers diverse offerings, it can share resources, expertise, and infrastructure across them, reducing overall costs. For example, a company that manufactures both printers and toner cartridges can streamline procurement, manufacturing, and distribution. The key idea is that combining related activities leads to efficiencies and lower costs, which can enhance competitiveness and profitability across the company's entire range of products or services.