Try not to just spout things like "scale economy". Instead push your intuition to a higher level. I would say the major cost here is related to the air transport. And it's unlikely that scale will help here.
When looking at other examples do the same. If the major cost of a product is related to manufacturing. (chemicals for instance) And you form a bigger company by just combining several factories, how much scale effect will you have? (Oppposite example might be pharma company where manuf is small part of cost and sales/RD are large part. Here combining sales forces might give you substantial economies. Of course you have to check that the sales forces are not differentiated by therapuetic area. (I.e. can't cross-sell effectively).
Not a flame, but just some food for thought...
When looking at other examples do the same. If the major cost of a product is related to manufacturing. (chemicals for instance) And you form a bigger company by just combining several factories, how much scale effect will you have? (Oppposite example might be pharma company where manuf is small part of cost and sales/RD are large part. Here combining sales forces might give you substantial economies. Of course you have to check that the sales forces are not differentiated by therapuetic area. (I.e. can't cross-sell effectively).
Not a flame, but just some food for thought...
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