Typically, a company that achieves
economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
This would tend to drive
economies of scale lowering unit costs which can increase margin or keep prices in alignment with client requirements.
Not exact matches
And due to its
economies of scale and zero marketing needs, it would have very
low management fees, less than half a percentage point.
Williams's confidence may come from his predecessor, Rick George, who used periods
of low oil prices to snap up assets, exploit
economies of scale and accrue shareholder value.
The combined company will have
lower costs, greater
economies of scale, and the resources to provide U.S. consumers and businesses with
lower prices, better quality, unmatched value, and greater competition.
In terms
of the large -
scale, mass - produced
economy, the utility
of low - skill human workers is rapidly diminishing, as many blue - collar jobs (e.g., in manufacturing) and white - collar jobs (e.g., processing insurance paperwork) can be handled much more cheaply by automated systems.
But size also matters: These gains come from a very
low base, and none
of these
economies has the
scale to be a serious «new BRIC» candidate.
During the year ended December 31, 2008, we had a gross loss
of $ 1.1 million due to the
lower pricing for our initial vehicles, the high materials and manufacturing costs associated with our first generation Tesla Roadster and limited
economies of scale from
low vehicle production volumes.
We have built a scalable platform that allows us to provide faster business insights at
lower costs, develop and introduce new products quickly and leverage
economies of scale to reduce costs and enable next - generation hosting architecture.
Now I know the companies manage to find some good, hungry vendors out there that will help make the product cheaper, but as soon as the
economy turns around and that vendor then gets a chance to reprice the manufacturing
of it, you find yourself in trouble because now you've already priced your product
low to take advantage
of scale of that product.
The report further stated that since companies typically offer gutter cleaning and swimming pool cleaning within a limited geographic scope in order to limit transportation expenses, there are limited benefits to
economies of scale; consequently, there is a
low level
of market share concentration.
Industry report states that since companies typically offer swimming pool cleaning services within a limited geographic scope in order to limit transportation expenses, there are limited benefits to
economies of scale; consequently, there is a
low level
of market share concentration.
This approach seeks to maximize long - term profits by increasing market share and
lowering costs through
economy of scale.
By virtue
of their size within the ETF industry, the firms have the ability (through
economies of scale) to charge significantly
lower fees in comparison to other companies.
The Competition Bureau in its pleadings to the Tribunal not only presumed VOWs benefitted from the principle
of «
economies of scale» the Competition Bureau presumed (without evidence) that VOWs were so inherently cost effective that they surpassed «
economies of scale» and generated such positive revenue for their operators that
lower commission rates were virtually guaranteed!
«We hope to be able to quickly build up the size, achieve
economies of scale and operational efficiency to
lower investment costs as quickly as possible,» Lin is on the committee responsible for its non-U.S. business, said in an interview in Beijing.
Lower costs can be achieved through technological innovation and through
economies of scale — a product is less costly to manufacture in large quantities.
At the time
of its acquisition
of Tanumbirini Station, Reza Vishkai, head
of Global Farmland at Insight Investment, said: «The Northern Territory has a comparative advantage for beef production due to its geographical proximity to export markets, the
low intensity pasture based production system and the
economies of scale.»
* The dairy supply chain should improve its
economies of scale in primary production and processing to achieve
lower unit costs, and contribute to improved competitiveness.
As organic agriculture assumes larger shares
of the market,
economies of scale should be able to
lower these costs significantly.
De Saint - Affrique is sure that Barry Callebaut is able to satisfy both poles
of the market — due to its production know - how and its size, which result in
economies of scale, Barry Callebaut is able to keep up competition in the market for
lower - priced products, while at the same time its master chocolatiers guarantee innovation and make sure that the company can meet the highest customer requirements.
[18] In addition, higher participation among all children allows for
economies of scale and may lead to
lower costs per meal.
However the
economies of scale do apply and if the food in a school is proven to be good over a sustained period, then universal takeup can
lower the price while maintaining the quality or indeed further improve the quality (for example in our school when the takeup reached more than 60 % they were able to switch to entirely free range organic meats where they had previously managed just decent quality local meats).
Lower environmental footprint - due to
economies of scale, less water and energy used than cloth diapers laundered at home, no impact to landfill when compared to disposable diapers
The least poorly funded schools tend to be rural schools in
low income rural areas with an insufficient local tax base to support them and with high costs associated with a lack
of economies of scale and large transportation costs for students.
In fact, the four biggest
economies in the world all have fuel efficiency standards that will converge by 2025, encouraging research and development
of lower emission vehicles on an international
scale.
Organic has become much
lower priced lately because increased consumer demand has brought the
economies of scale.
Although some small districts may have
lower salaries and transportation costs than larger districts, and opportunities for creative and cost - effective service delivery certainly exist, it is often assumed that larger districts necessarily enjoy
economies of scale from which small districts can not benefit.
The
lower cost per learning hour used in large organizations likely correlates to the same concepts
of reuse and
economies of scale that temper overall spending per employee.
For inefficient conventional universities, the
low start - up costs and potentially staggering
economies of scale inherent to MOOCs represent a tremendous opportunity.
Atlanta Public Schools Chief Financial Officer Lisa Bracken said the school district has higher costs for several reasons: The expense
of city living drives up teacher pay; the district has «
low population» schools that lack
economies of scale but are kept open «due to urban traffic constraints and community needs;» many students need extra services because they have learning problems or disabilities, don't speak English fluently or come from poverty; and the district has a large unfunded pension liability with growing obligations.
Musk opened his MPII blog discussing how it was necessary to launch Tesla with the six - figure Roadster electric because
of the cost
of the technology and the lack
of economies of scale due to
low volume.
The combined company will have
lower costs, greater
economies of scale, and the resources to provide U.S. consumers and businesses with
lower prices, better quality, unmatched value, and greater competition.
Remember, Amazon has a two or three-fold
economy of scale in ebooks that makes its distribution costs the
lowest in the industry.
However, the
economy of scale still exists, and larger runs have a much
lower cost per book.
That in turn leads to better
economies of scale, more power to price ebooks at
low prices, more resources to work on new features, and better Kindle prices — all
of which leads to more sales.
The
economies of scale and infinite shelf life now mean relatively
low sales make publishing well worthwhile, and serving niche audiences that were not viable before is possible and profitable.
Even with subsidies, Amazon is going to find the 10 ″ tablet market much tougher competition — I don't think Apple will let them get substantially under them in price, and with the mother
of all
economies of scales (they must be consuming close to half the world's flash memory production), they certainly have room to price the iPad2
lower when the iPad 3 Retina ships.
It needs
economies of scale before MER can go
lower.
But it remains to be seen whether a Venture ETF can ever have the
economies of scale it will need to keep its costs
low and its tracking error small.
«Big banks have
economies of scale which means
lower pre-approval costs.»
This allows the fund to benefit from
economies of scale, which help to keep the management fee
low.
The main differences are that PRPPs can be set up by small businesses so that contributions automatically come off an employee's paycheque (employees would be allowed to opt out); the government also promises that PRPPs would have
lower management fees because contributions would be «pooled» with others in large pension funds, creating
economies of scale.
Bigger plans tend to have better
economies of scale though such that fees are relatively
lower for them.
ABL is # 1 or # 2 in every market they compete in, so I think they have competitive advantages through
economies of scale, being vertically integrated, and also being the
low - cost producer.
CAH competitive advantages include
economies of scale, being a
low cost provider (deep pricing discounts from drug manufacturers), and barriers to entry (enormous distribution system).
Until it grows and can take advantage
of economies of scale, the SPP likely won't be able to
lower its fees.
Use
of master - feeder can benefit feeder fund performance as
economies of scale that may be realized in managing and administering the master fund pass through as
lower expenses to the feeder funds.
As for other funds offered in the plan, the complaint says that, rather than taking advantage
of the plan's
economies of scale, as required by its investment policy statement (IPS), to reduce the investment expenses charged to plan participants, Philips North America selected and maintained high - priced share classes
of mutual funds, instead
of identical
lower - cost share classes
of those same mutual funds which were readily available to the plan.
Admittedly, managers earn
lower revenues (& have
lower return - based growth) from their AUM base, so it takes longer for
economies of scale to kick in.