Market-Driven Management and Global Economies of Scale

Abstract

In market-driven management, dominated by competitive customer value, economies of intensity of sharing, or synergies, can be linked to global economies of scale. A market-driven management strategy radically alters the interpretation perspective of the issue of synergies. In market-driven management, synergies or economies of intensity of sharing do not derive from ‘pooling resources’ in order to saturate manufacturing capacity better, but from exploiting a store of skills to support different businesses. The cases presented (Geox and Yamamay) regard companies that can be defined as competitive customer value oriented, partly as a result of their capacity to exploit economies of intensity of sharing, by synergetic recourse to their basic skills.