Compare the concept of economies of scale with economies of scope. Both concepts have same principle which is to lower the production cost, cost savings and increase the marketing competitive advantage in order to gain the high return. However, they have different approach and strategy to save cost and increase return. The concept of economies of scale is cost savings that accrue from increases or expands in size or number. If two plants produce same …showed first 75 words of 4463 total…

…showed last 75 words of 4463 total…Lioukas, S. (2001), An Examination into the Causal Logic of Rent Generation : Contrasting Porter's Competitive Strategy Framework and the Resource - Based Perspective, Strategic Management Journal, Jan. pp.907- 934 Teece DJ, Pisano G, and Shuen A, (1997), Dynamic capabilities and strategic management, Strategic Management Journal 18(7):pp. 509-533 Thompson, A and Strickland, A. (2001), Crafting and Executing Strategy, (12th edn.) New York, McGraw - Hill/Irwin Wernerfelt, B. (1984), A resource-based view of the firm, Strategic Management Journal, 5 : pp. 171 - 180