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Improve the Use of Company Resources

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Improve the Use of Company Resources

There’s a long-held axiom in business that a company should focus on its differentiation and its “value-add.” In other words, you concentrate on the aspects of your product or service that are uniquely yours, and delegate the rest. In an earlier age, our grandparents might have said, “Stick to your knitting.”

Automobile manufacturers in the early 1900s used to manufacture every component of the car, from engines to bodywork, and upholstery to paint. Today, most of that work is handled by specialized suppliers, with the automaker handling the overall design and the project management. They came to realize that making their own tires, spark plugs, or brake pads didn’t make a car any more attractive or competitive. Wouldn’t their time and resources be better spent developing value-added differentiation? As the current automotive market indicates, the right decision was clear.

Read the full Improve the Use of Company Resources Market Outlook.