“Modular economy”? What, the economy now comes in easy-to-assemble pieces from Ikea?
Yes, except for the Ikea part. And it makes a difference in strategy for everyone from entrepreneurs to investors to competitors.
There was a time when vertical integration was in vogue. Ford, for example, could transform raw materials out of the ground into finished vehicles at its gargantuan (1½ square miles!) River Rouge Complex.1 Vertical integration is attractive because you control everything and it’s hard for competitors to duplicate. The downside is that it can be hugely expensive, difficult to modify or update, and hard to manage. Ford found it so. Other than a 3,000-place parking lot for a nearby Ford facility, the old Rouge was gone as of 2008. …Read More →