Build, Borrow, or Buy

CHAPTER 2

When to Build

Internal Development Versus External Sourcing

For good reasons, most businesses naturally think of internal development first when they need new resources. The search for strategic resources is ultimately about gaining a competitive edge. And resource ownership often goes hand in hand with competitive advantage. The ability to control intellectual property affords the greatest opportunity for ongoing profits—as long as you are the first to succeed with differentiated products. The more your firm can do on its own, the better able it should be to integrate, control, and protect core resources. And in the bargain, it will avoid the trouble and expense of finding, pricing, integrating, and recombining resources from third ...