https://wiki.dirkjanswagerman.nl/index.php?action=history&feed=atom&title=Buy 2026-10-25T10:19:02Z Revision history for this page on the wiki MediaWiki 1.34.2 https://wiki.dirkjanswagerman.nl/index.php?title=Buy&diff=216&oldid=prev 2020-08-25T07:13:48Z

<p>Created page with &quot;&#039;Buy&#039; refers to a companies decision to manufacture or develop (parts of) a product externally. Reasons favoring &#039;Buy&#039; decisions are: * &#039;&#039;&#039;High economies of scale&#039;&#039;&#039; ** If an...&quot;</p> <p><b>New page</b></p><div>&#039;Buy&#039; refers to a companies decision to manufacture or develop (parts of) a product externally. Reasons favoring &#039;Buy&#039; decisions are:<br /> * &#039;&#039;&#039;High economies of scale&#039;&#039;&#039;<br /> ** If an external party can produce the asset for multiple consumers in higher volumes than the firm itself, that party is in a much better position to profit from economies of scale<br /> * &#039;&#039;&#039;High capital requirements&#039;&#039;&#039;<br /> ** If the production of a certain good requires a high upfront investment, such as a specific production plant. It may be helpful to find an external partner who already made that investment.<br /> * &#039;&#039;&#039;Specialized know-how&#039;&#039;&#039;<br /> ** Due to [[Learning effects|Learning effects]] a company with specialized know how will be able to produce a certain good or service cheaper at higher quality.<br /> * &#039;&#039;&#039;Higher efficiency of the open market&#039;&#039;&#039;<br /> ** External parties are forced to be more efficient as they are continuously under competitive pressure.<br /> [[Category:businessmodelling]]<br /> <br /> [[Category:Business]]<br /> <br /> [[Category:M8]]<br /> <br /> [[Category:Modeling]]<br /> <br /> [[Category:Term]]</div>

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