Which strategy focuses on reducing costs through economies of scale?

The strategy that focuses on reducing costs through economies of scale is mass production. This approach involves manufacturing large quantities of a product to decrease the per-unit cost. By producing items in bulk, companies can spread fixed costs—such as salaries and factory rent—over a larger number of products, thus reducing the overall cost per unit. Additionally, mass production often allows for the use of specialized labor and machinery, which can increase efficiency and further lower costs.

In contrast, just-in-time production aims to reduce inventory costs and is more about having the right items available at the right time, rather than maximizing production volume. Agile manufacturing emphasizes flexibility and responsiveness to changing customer demands, while lean management seeks to eliminate waste and improve processes. While all of these strategies may have cost implications, they do not primarily focus on the economies of scale that are the hallmark of mass production.