Buy, Build, or Partner
No business is everything to everyone right from the beginning. In order to grow, a company will need to take steps to expand its capabilities. At this point, a company has three options to choose from: Buy (acquire) another business, build (innovate) new products and services, or partner with another company to expand its offerings. Product teams also face this decision when developing products to meet customers’ needs.
Who Owns the Buy, Build, Partner Decision?
It takes cooperation to make a good buy, build, or partner call. However, the decision should be based on what the market needs, which product managers know best.
The following 3-step process can help you make a good buy, build, partner decision:
- Identify the problem: Conduct market analysis and map the competitive landscape.
- Define the ideal solution: Collaborate with your product architect, lead engineer or CTO to determine what the right solution looks like.
- Choose an approach: Decide whether to buy, build or partner to develop the solution.
Once you’ve done the first two steps, choosing the right answer should be relatively clear.
When to Buy, Build, or Partner
While there are deeper facts to consider, here is an at-a-glance guide on when to buy, build, or partner.
Buy
- Existing parts to your product
- No need to reinvent the wheel
Build
- Nothing like it exists
- Building will add to your company’s DNA
Partner
- Both companies will benefit
- Customers would benefit from the partnership
Download The Pragmatic Framework
Want to learn more about the Buy, Build, or Partner decision and its role in the Pragmatic approach to product? Download the Pragmatic Framework, which explores key concepts in product management and marketing, from market research through development and into product life cycle support.
