Organizations reap the advantage of economies of scope when - They achieve cost savings by effective utilisation of underutilised resources. They diversify in all directions — vertically and horizontally. Carry high breadth and width of product-lines. Earn huge profits.

Organizations benefit from economies of scope in several ways:

1. Cost Savings: When organizations effectively utilize underutilized resources, they can reduce costs. This can be achieved by sharing resources across different parts of the organization or by integrating different functions.

2. Diversification: Organizations can also benefit from economies of scope by diversifying their operations both vertically and horizontally. Vertical diversification involves expanding into different stages of the production process, while horizontal diversification involves expanding into different markets or product lines.

3. Product Line Expansion: Having a wide breadth and depth of product lines allows organizations to spread their fixed costs over a larger number of products, which can lead to cost savings. It also allows them to cater to a wider range of customer needs and preferences, which can lead to increased sales and profits.

4. Increased Profits: All of these factors can contribute to increased profitability for the organization. By reducing costs, diversifying operations, and expanding product lines, organizations can increase their revenue and profit margins.