Economies of scope

in this structure, costs are reduced when the company invests in varied markets or in a greater scope of operations. This is because different products share resources and processes. For example, the company already has an ongoing infrastructure, with Marketing, Finance and HR departments, for example, and can enjoy the same organization and only expand the scope, saving in the end. Scope economies offer several advantages, such as: design and product mix flexibility, faster response rate and shorter time to market changes, reduced waste, more accurate change and cycle prediction, more efficient use of software and hardware. In short, there is less risk in a business that sells more than one product and / or segments several markets, since even if the market falters, the company will have more alternatives to sustain itself as it rebalances its strategy.