Comm210final - Chandler , Economyofscope.

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Chandler: Economy is of scale   more you produce, less it will cost to produce. Economy of scope.   max out production of resources   this theory was  established after he did a 10 year study on 200 largest manufacturing companies. Scale and scope is an advantage to technological advanced capital intensive  industries, per unit cost drops as volume of output rises.(scale) First mover is an advantage (who made an impact in their industry) “Those who first made these large investments- the companies I call first movers  quickly dominated their industries and continued to do so for decades.” Stick to what you do best , stick to what you know   he’s against diversification.  Ex: Google diversifies started as search engine…. Apple stayed in their niche  technology its not manufacturing cars sticking to software technology etc.
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This note was uploaded on 12/01/2011 for the course COMM COMM 210 taught by Professor Paquin during the Spring '09 term at Concordia Canada.

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Comm210final - Chandler , Economyofscope.

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