What Is Cost Synergy?

Synergy Effects, simply put, are "1 + 1> 2" effects. Synergy can be divided into external and internal situations. External collaboration refers to the fact that companies in a cluster work together to share business activities and specific resources, so they can achieve higher profitability as a single-operating company. Internal collaboration refers to The overall effect of using the same resource at different stages, in different stages and in different aspects of production, marketing and management of an enterprise.

Synergy

(German physicist Hermann Haken proposed the concept)

Synergy: Synergy Effects

Synergy refers to the overall effect of the different resources, different stages, and different aspects of a company's common use of the same resource in production, marketing, and management.

Or it refers to the increased competitiveness after mergers and acquisitions, leading to

Synergy is originally a physical and chemical phenomenon, also known as

Synergies from mergers and acquisitions include:

There are many types of synergies, the most common of which are: business synergies,

In the process of combining hemoglobin with oxygen, first an oxygen molecule binds to one of the four subunits of hemoglobin, and the structure of globin changes after binding to oxygen, resulting in a change in the entire hemoglobin structure. This change makes the second Compared with the first oxygen molecule, the molecule is easier to find the binding of another subunit of hemoglobin, and its binding will further promote the binding of the third oxygen molecule, and so on until the four subunits constituting hemoglobin are separately connected to four Oxygen molecules bind. The same is true of the process of releasing oxygen in tissues. The departure of one oxygen molecule will stimulate the departure of the other until all the oxygen molecules are completely released. This interesting phenomenon is called a synergistic effect.

Kuhn discovered a synergistic effect in capillary electrophoresis in 1992, using 18-crown-6-tetracarboxylic acid

Scope economy and synergy

The so-called scope economy is the synergy effect of multiple financial services provided by the same institution.

The difference between economies of scope and economies of scale is that economies of scale refer to the fact that at a given technological level, as the scale expands, the increase in output increases the average cost (unit output cost) gradually. The scope economy refers to the same core expertise, which leads to the diversification of various activities, and multiple activities share a core expertise, which leads to a reduction in the cost of various activities and an increase in economic benefits.

The meaning of the scope economy to reduce various costs by sharing core technologies is essentially the same as 1 + 1> 2 of synergy.