Economy of Scope

Economy of Scope – The economy of scope is in some ways similar to the economy of scale. However, with the issue of scope the focus is on expansion or decreasing the scope in sales and marketing. This can apply to any of the services or products that the company produces. And they may decide to streamline their variety of products because only one item is dominating the sales. Thus the sales department may decide to recommend they reduce their product options for the sake of possibly improvement in their general sales efforts and possible future sales that will take place.