David Rickmann RJ: Dave! CO: Dave! Post Rating: 8 + / - Total Posts: 10 Karma: 19 Joined: Apr 3, 2012 |
Posted on May 3, 2012 Why, in real life, do some companies produce just one thing?Why do other companies buy in supplies instead of completely vertically integrating? The answer is that a mining company focusses exclusively on mining. They can mine a lot better than a toymaker can. We don't have this distinction in EoS. The best plan, for lowest cost, is to vertically integrate. But what if you could research production efficiency as well as quality. You could run a company exclusively focussed on making fibreglass and put all you money into researching fibreglass manufacturing efficiency. Better economy of scale, reduced cost, so a focussed company could manufacture things far more cheaply than a generalist company. |