M & A of Enterprises and Clusters of Enterprises——On the Two Realization Forms of Economy of Scale

This article gives a brief summary of the economy of scale theories, analyses and compares the two forms to realize economy of scale, MA of enterprises and clusters of enterprises, and points out that MA of enterprises is not necessarily suitable for the industries whose products are relatively not so highly standard. These industries can get remarkable benefits by concentrating highly on some districts and forming clusters of enterprises with industrial characteristics.