Economies of scope

Economies of scope is the cost savings developed by a group when it shares activities or transfers capabilities and competencies from one part of the group to another – for example, two products sharing the same sales team. See also Economies of scale.

Definitions

According to the Corporate Strategy by Lynch (4th edition),

Economies of scope. The cost savings developed by a group when it shares activities or transfers capabilities and competencies from one part of the group to another – for example, two products sharing the same sales team. See also Economies of scale.