Economies of scope: make it cheaper to produce a range of products together than produce each one on its own as company can share inputs (e.g marketing and finance) removing cost redundancy

Would this come from horizontal or vertical integration? + example would be great!

Also, is economies of scope the same as synergy?


We'll you've pretty much answered it yourself... Assuming any integration happens, it'll be horizontal

Vertical integration is buying your customer/ supplier up/down the value chain

Horizontal will be to buy your competitor, and in the general case, its added value and the reason of purchase will be the specific products it creates, not its finance dept. for that matter

Regarding an example, most M&As I can think of right now are of vertical integration If I remember any I'll add them as comments

  • $\begingroup$ This does not answer the question. $\endgroup$ – Giskard Sep 13 '18 at 13:23
  • $\begingroup$ I have no problem deleting the question, if it's not really answering... but I think I did. Pretty much in the 1st line. Why do you think so ? $\endgroup$ – Guy Louzon Sep 13 '18 at 13:28

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