Buy v/s Build

[neerajchauhan]

Entering into an OEM (original equipment manufacturer) agreement in the future certainly seems to be lucrative- it may be to make money in an area where your competitors dominates. The arrangement could greatly improve how a business works, since you'll sell and manufacture more of your products.

In my opinion we can go for buying it. Outsourcing could be an good option, this will reduce labor costs & also buy us more time to concentrate on other important process.

Beside that buying can help in improving productivity & companies can concentrate on their core functions. So, companies can go for buying components.

:SugarwareZ-292:

 

[Muraly]

Outsouring what we cant do is wat we have learned in management. thats the strategy

 

[deepakraam]

We are discussing about 3 important aspects of business here:

1. Building the talent
2. Buying the company
3. Outsourcing the project.

A company has to do all 3 based on lot of factors.It cannot be generalised.Due diligence must be based before doing any of these stuffs.A company will acquire another company if it has new technology with trained manpower at the right price.It will also make a calculation huv much revenues is going to come bcos of the acquistion.If the talent can be developed inhouse then the acquistion become redundant. Outsourcing can be cost-effective bt the company must also ensure the same quality or customer experience can come after outsourcing.Simply outsource the job and concentrate on the core business will not work out. If a company is losing the customer base after the outsourcing then they are in serious trouble.

So each of the 3 strategies has pros and cons and a company must take decision based on which suits them at tht point.

-Deepak.

 

[sdsingh]

hi friends ...i would agree for buying the company as comapred to other aspects ..but the other two also have pros and cons

 

[prateek.khincha]

buying has always been and will always be a much faster and safer option