Th3.3: ^^ Marketing and Purchasing Economies Flashcards

1
Q

Buying in bulk

A

large firms are able to buy in large numbers so may be able to buy their raw materials at a cheaper price than competitors

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2
Q

Specialisation

A

like other areas, businesses can afford to take on specialist buyers and sellers who could be more efficient due to the extra time and knowledge

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3
Q

Distribution - Why are large firms able to enjoy preferential rates from transport companies?

A

because they offer the company a lot of business - can transport in large batches

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4
Q

Distribution - What can large businesses also establish?

A

regional distribution centres which enables them to reduce transport costs by using large transporters over long distances, storing goods in the distribution centre and take stock to individual shops

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