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Economics
Economies of Scope
Cost savings that come from producing a wider variety of products using the same resources.
Economies of scope are different from economies of scale. Scope is about variety; scale is about volume. Companies that share resources across products can often undercut specialists.
It's cheaper for a bakery to make both bread and cakes than for two separate bakeries to specialise in just one.
Real world: Amazon started with books but used the same warehouses, technology, and customer data to sell everything from electronics to groceries — huge economies of scope.
💡 Economies of scope are why big companies keep adding new product lines.