Discuss the Build-Borrow-Buy Framework. How can a company make its strategy?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Discuss the Build-Borrow-Buy Framework. How can a company make its strategy?
Transcribed Image Text:Build-Borrow-or-Buy Framewk•
Provides a conceptual model that aids firms in deciding
whether to pursue internal development (build), enter
a contractual arrangement or strategic alliance
(borrow), or acquire new resources, capabilities, and
competencies (buy). Firms that are able to learn how to
select the right pathways to obtain new resources are
more likely to gain and sustain a competitive
advantage.
Build-Borrow-or-Buy Framework
EXHIBIT 9.1 / Guiding Corporate Strategy: The Build-Borrow-or-Buy Framework
Strategic
Resource
Gap
Low
Low
High
Low
Revisit
How relevant
are internal
resources?
How tradable
are the targeted
resources?
How close
How well can
Key
Question
to your resource
partner?
you integrate the
target firm?
options or
reformulate strategy
build-borrow-buy
High
High
Low
High
Strategic Alliance
Internal
Development
Action
Acquisition
• Contract
• Licensing
· Equity Alliance
• Joint Venture
Buy-Borrow-
or-Build?
Build
Borrow
Buy
Contractual
Alliance
Alliance with
Equity
SOURCE: Adapted from L Capron and w. Mitchell (2012). Build. Borrow, or Buy Solving the Growth Dilemma (Boston, MA: Harvard Business Review Press)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON