Nimbleness of Scale

In business, there are two benefits that accumulate to large or diversified companies: Economies of Scale Economies of Scope Economies of Scale are the benefits of from doing more of the same. If you make 10MM laptops a year, your cost per computer will be cheaper than if you make 100,000 laptops per year. These benefits come from a number of sources: Purchasing Power: Since you are buying components for 100x as many LCD screens, you can negotiate better prices.