Economies Of Scale Theory Expansion Of Enterprise Scale

In the process of economic globalization, enterprise-scale expansion shows a huge and unbounded features and large multinational corporations have become the dominant global economy. Due to historical reasons, China's enterprises have been "large and all-encompassing, small and complete" state, did not form a large company-led companies, large and small, exist side by side. SMEs also lack the accumulation and concentration. In order to improve the competitiveness of the enterprises and enterprises in urgent need of large-scale expansion.The traditional theory of economies of scale seems to indicate that the larger the enterprise, the more conducive to the realization of economies of scale, But in reality the situation is not only large enterprises with strong economies of scale, Small enterprises also showed strong economies of scale. Traditional theory can not explain this phenomenon. Traditional theory has been working to explore the economies of scale inherent mechanism, external economies of scale can not provide a reasonable explanation. According to Coase's theory transactions, enterprises are boundaries, but since the 1980s, strategic alliances, Virtual Enterprise these new economic organizations showed the unbounded features. The limitations of traditional theory compels us to further study and look into the matter.External economies of scale not only benefit SMEs, large enterprises and listed companies also enjoy such benefits, The scale enterprises and the expansion of the external enterprise economy are not necessarily linked. Enterprises apart from the vertical integration of assets dedicated to overcome, to prevent opportunistic reasons, more is to create a brand, improving the overall competitiveness and ability to maintain their monopoly status. Horizontal integration is more expressed in the formation and industrial diversification. and not only peer between mergers and acquisitions. Aggregation of economies of scale is not different areas in the geographical scope of centralization. the same areas in the geographic focus of the same will have a positive external effects. Advanced network technology, enterprise aggregation and centralized breakthrough in the geographical and space constraints, enterprise-scale expansion really be no borders.Theory of economies of scale for enterprise-scale expansion to provide a theoretical foundation and guidance and the size of the business expansion of the practice is to promote the economies of scale to further develop the theory. Enterprises based on economies of scale expansion is the fact that the pursuit of profit, as well as its outcome But enterprises will have to be economies of scale are inherently accurately grasp and understanding, carrying out large-scale expansion at the same time, Bewaring of "economies of scale traps."...