Scale Economies

Observations on Scale Economies

Observations that the case writers have about the scale economies cases.

TSMC - Slow Dominance

Behind the scale advantage of the world‘s most important semiconductor manufacturer.

Amazon - From Books to Everything

Why scale is such an important component of Amazon's core strategy, and why it dictates so much of what the company does.

Nike - Living in a Variable Expense World

What happens when something about your market forces you to spend a fixed % of sales on marketing? The result: the scale player has an ongoing advantage.

Koufu - Feeding a Nation

Scale economies in Singapore's coffee shop and food court industry.

Texas Instruments - Inventing Learning Curve Pricing

How Texas Instruments weaponised the learning curve in semiconductor manufacturing, and then pushed it too far.

PayPal - Poisoning the Competition

Sometimes, scale advantages can come from your position in the market, not necessarily from production unit costs.

Netflix - Becoming a Large Movie Studio

How Netflix's pivot to content may be considered a defensive pursuit of economies of scale.

Ford - A Car for Everyone

What it looked like when Henry Ford discovered the fundamental principles of scale economies ... from scratch and through trial and error.