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Economies of scale is the cost advantages that Royal Danish Bearings obtains due to size. The greater the volume, the greater the advantage … "Economies of Scale (Royal Danish Bearings)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Economies of Scale (Royal Danish Bearings)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.