Economies of scale - volume purchase; specialisation of labour; specialised machines and technology
Economies of scope - shared resources through centralised process, either setting up own off-shore shared service centre or outsourced; grouped/pooled purchase; vertical integration
Experience curve effects - improved skills and routines; improved quality
Production techniques - process innovation; automation
Product design - standardisation of designs and components
Input cost - location advantages; off-shore to low-cost location