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Most, if not all of us, prefer to shop online. The portal of choice is Amazon, the top online retailer. Though the trend has seen opposition, with culture used as a tool to persuade shoppers to patronize local stores, there have been no concrete results.
Can we then make a blanket judgment that people are not empathetic to the small business owner? Not really, as the online shopper is only looking after his/her best interests. The cost and time savings that a giant conglomerate like Amazon can provide to its customers are simply not possible for your smaller business. Companies like Amazon use Economies of Scale.
To put it simply, economies of scale refer to the savings that a company can achieve by increasing its production. This allows a company to produce more with less.
The concept of economies of scale is important to understand because it has a profound impact on a company's competitiveness. For example, if a company can produce more with less, then it can sell its products at a lower price than its competitors and still make a profit. These savings can be invested in other areas of the business, such as research and development or marketing.
There are two main sources of economies of scale: First, there are those that arise from physical or technological aspects of production; and second, there are those that come from the organization or management of the company.
It is important to note, however, that there are limits to the benefits that can be achieved. In some cases, firms may reach a point where further expansion will actually lead to higher unit costs, due to diseconomies of scale. This occurs when the costs of expanding production outweigh the benefits of economies of scale. Thus, firms must be careful not to over-expand their production in pursuit of economies of scale.
To be competitive, companies must push themselves to gain this level and efficiency. To present the importance of this to your colleagues and shareholders, we have curated 10 PowerPoint templates to express their importance in the form of visuals such as tables and graphs.
Template 1: Economies Of Scale Elements PPT Template Bundle
This PPT layout provides the latest research and analysis on economies of scale to help businesses make more informed decisions. Access this complete deck to discuss the nature of the scale of economies, influencing factors, comparisons, and more. Employ it now.
Template 2: Economies of Scale Table PowerPoint Slide
This tabulated PowerPoint design covers the key points in a clear and concise manner, with supporting graphics. Use this template to present the type of economies by size and compare the current and future costs. This will help you picture the success of economies of scale via numbers. Download it now.
Template 3: Graph Showing Economies and Diseconomies of Scale
This graph helps the audience understand how costs change as businesses make additional products. With this PPT design, you can showcase how costs decrease as production increases but rise after a certain level of production. Incorporate it now to tell your audience why.
Template 4: Variables of Economies of Scale PowerPoint Slide
Economies of scale is an important concept in business and economics, but how does it matter and manifest? Use this PowerPoint layout to explain this topic, which includes the external and internal business environment and the global market for businesses. Download it now to educate your colleagues.
Template 5: Economies of Scale in the Long Run
In the long run, economies of scale can be a powerful tool to increase your company's competitiveness. Its impact, in the long run, is what we all understand, but need help to convey it better for others to get on the same page. Use this PPT set to understand and demonstrate how it happens. Get it now.
Template 6: Key Elements of Economies of Scale
What are the key elements of economies of scale? How do they work? What are the benefits of economies of scale? Use this PowerPoint layout to define and clarify the need for economies of scale for your business. Download it now to reduce costs and increase productivity.
Template 7: Economies of Scale and Diseconomies of Scale
Excess of everything is bad. Even good things like an increase in productivity. We present this graphical PPT slide to understand that after a predefined quantity of production, the economies of scale principle cannot be applied. We don’t want you to enter a diseconomy, so get this slide right away.
Template 8: Internal and External Economies of Scale
There are two types of economies of scale: internal and external. Internal economies of scale refer to the savings that a company can achieve by increasing its own output. External economies of scale arise when an industry as a whole increases its output. How does a business access either of these economies? Download this PowerPoint theme to describe it to your audience.
Template 9: Three Parts of Economies of Scale
There are three parts to economies of scale- internal, external, and globalization. Each type has its own advantages and disadvantages. Use this PPT layout to unfold the characteristics of each using a listicle format. Download it now.
Template 10: Graph Showing Economies of Scale of Three Companies
The size of a company is directly related to economies of scale. Use this PowerPoint design to demonstrate at what production quantity a small, medium, or large-sized company achieves maximum cost saving. Get it now.
This is a topic that needs to be understood if you wish to take your organization to the next level and even more importantly, allow it to compete in today’s market, which is saturated with conglomerates like Amazon and Target.
Download our templates to get people on board to make constructive changes to achieve the cost savings possible.
P.S: Check out our profit and loss statement blog to stay on top of your company’s finances and access the editable templates within.
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