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by cnasc
780 days ago
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This is fairly standard for mature products. In the early days the whole production process is tightly integrated, but as components and processes mature there is less room for there to be some “secret sauce.” Once that happens it makes sense to outsource it to other firms who compete on cost while you focus on parts where you can differentiate. That said, companies frequently misstep determining where they can safely outsource and where they must keep things integrated. |
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