Original Equipment Manufacturer - Economies of Scale

Economies of Scale

OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory.

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Famous quotes containing the word scale:

    “I love to weigh, to settle, to gravitate toward that which most strongly and rightfully attracts me;Mnot hang by the beam of the scale and try to weigh less,—not suppose a case, but take the case that is; to travel the only path I can, and that on which no power can resist me. It affords me no satisfaction to commence to spring an arch before I have got a solid foundation.”
    —Henry David Thoreau (1817–1862)