Acceptable Quote by Clayton Christensen
“It is when the product is not good enough that proprietary integration gives you a competitive edge. You cannot outsource and be competitively successful in this situation. But at the other end, where standard components assembled in standard ways can yield acceptable performance, you must outsource.”
About This Quote
Source Book: "The Innovator’s Dilemma", 1997
Argues that when products are subpar, proprietary integration can be a competitive advantage, but for standard components, outsourcing is preferable.
In simple terms: Use integration for unique products, outsource for standard ones.
Key Takeaway
Match strategy to product uniqueness.
Themes
innovation
strategy
outsourcing
Mood
analytical
strategic
Type
business
practical
When to use this quote
- product development
- supply chain management
- cost reduction
- technology strategy
Key Concepts
business models
competitive advantage
Questions to Reflect On
- When should you integrate versus outsource?
- What risks arise from proprietary focus?
A Different Perspective
May oversimplify complex market dynamics.
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