In the UK, Rolls-Royce, a major aerospace manufacturer, benefits from internal economies of scale. As it produces more aircraft engines, it can negotiate better prices for raw materials (bulk-buying economies), invest in advanced production equipment (technical economies), and spread administrative costs over a larger output (managerial economies).

Large UK supermarkets like Sainsbury’s also benefit from economies of scale by using highly efficient supply chains and buying goods in large quantities at lower prices.

Internal economies help large firms become more competitive by lowering unit costs and increasing profit margins. However, if firms grow too large, they may eventually face diseconomies of scale, where costs begin to rise due to inefficiencies.