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:

    Every man needs slaves like he needs clean air. To rule is to breathe, is it not? And even the most disenfranchised get to breathe. The lowest on the social scale have their spouses or their children.
    Albert Camus (1913–1960)