Read the following scenario and then determine whether the firm should make-or-buy in this situation. Use the lecture and the book to determine the answer.
Your organization plans to introduce a new product in the next 16-18 months. The product will rely on technology about which your organization already has some know-how and equipment for. Although this product could open up new markets for your firm, you suspect that competitors are also making plans to enter this market. In fact, they are likely to have competing products out in the marketplace around the same time you expect to. Rather than compete on price, you feel that your firm's key to a strong market share will be how well you differentiate your new product from your competitor's.
Why would you make the item? Explain and discuss the reasons.
Why would you buy the item? Explain and discuss the reasons.
Make a recommendation in favor of make-or-buy, and explain why your chosen alternative is superior to the other.