Regimes of Accumulation
A firm can raise its profit through "breadth" by adding more employees to the organization. Conversely the firm can pursue "depth" by generating higher profit per employee. Each avenue of breadth and depth can be divided into pursuing differential accumulation through "internal" or "external" means. This gives us four categories of differential accumulation: internal breadth by amalgamation (buy or join other businesses), external breadth through greenfield investment (build new factories), internal depth via cost-cutting (make workers work harder or find ways to reduce the price of inputs), and external depth through stagflation (raise prices faster than the competition).
| External | Internal | |
|---|---|---|
| Breadth | Green-field | Mergers & Acquisitions |
| Depth | Stagflation | Cost-cutting |
Read more about this topic: Differential Accumulation
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