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Dictionary by pitch.dog
Strategic choices & advantage · Core

Economies of scale

Also called: scale economies, scale advantage

ELI5

Producing more makes each unit cheaper or more efficient.

Used in conversation

“The strategy depends on economies of scale in procurement.”

Definition

Cost or efficiency advantages gained as volume increases.

Here “Economies of scale” means: Cost or efficiency advantages gained as volume increases.

Pitch context

You will see “Economies of scale” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches strategic choices & advantage.

Why it matters: In strategic choices & advantage, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 9

Direct term-level sources and supporting source families.