In strategic management, find out I few decisions carry as much weight as those determining what a firm should “make” internally versus what it should source externally. This fundamental strategic choice—the classic “make or buy” decision—shapes organizational boundaries, capability development, and competitive advantage. Harvard Business Review case studies have long explored this terrain, offering rich material for understanding how companies navigate these complex decisions in real-world contexts.
The concept of “make” extends beyond simple production choices to encompass broader strategic responses to institutional environments, government policies, and market opportunities. As global business becomes increasingly complex, understanding how to analyze “make” decisions through strategic management frameworks becomes essential for both students and practitioners.
Recent research on multinational corporations’ responses to institutional changes provides valuable analytical tools for understanding “make” decisions. A 2025 master’s thesis from the University of Gothenburg examines how Volvo Group responded to India’s “Make in India” initiative using Oliver’s (1991) framework of strategic responses . This framework categorizes organizational responses along a continuum from passive acquiescence to active resistance.
The Volvo case study reveals that the company perceived the “Make in India” initiative as a positive support framework that enhanced India’s credibility and attractiveness for multinational investment . Rather than simply complying or resisting, Volvo pursued a combination of strategies that Oliver’s framework defines as “acquiescence and compromise”—expanding operations across multiple verticals while gradually increasing localization and engaging more actively with local stakeholders.
This nuanced response demonstrates that “make” decisions are rarely binary choices but rather complex strategic postures that evolve over time in response to institutional pressures.
The make-or-buy decision has traditionally been analyzed through transaction cost economics, which examines the relative costs of governing transactions within firms versus across markets. However, contemporary strategic management recognizes that capability considerations often outweigh pure cost analysis.
A Harvard Business Review case study titled “How to Make Onshoring Work” addresses the complexities of bringing service work back to domestic locations . The article highlights challenges including labor shortages, rising wages, and operational pitfalls that companies must navigate when making onshoring decisions. This case illustrates that “make” decisions require careful analysis of both internal capabilities and external labor market conditions.
The “Make in India” initiative, launched in September 2014 by Prime Minister Narendra Modi, represents one of the most ambitious government efforts to transform a nation’s manufacturing landscape . The program extended an official invitation to businesses across the globe to invest and produce in India, creating both opportunities and strategic challenges for multinational corporations.
An HBR case study titled “Make in India: The Operating and Marketing Challenge” examines the multifaceted implications of this initiative for global firms . The case explores how companies must navigate not only operational considerations—such as supply chain configuration and production localization—but also marketing challenges related to communicating their commitment to local manufacturing.
One of the most instructive case studies in strategic management comes from Samsung’s response to the “Make in India” initiative. A detailed case study from the IBS Center for Management Research documents Samsung’s strategic evolution across three phases: “Make in India,” “Make for India,” and ultimately “Make for the World” .
In the mid-2010s, Samsung enhanced its domestic manufacturing in India to take advantage of government incentives designed to attract multinational investment. However, the company went beyond simple compliance by launching complementary initiatives. you can look here Through its “Make for India” program, Samsung’s Indian R&D centers developed innovative products based on careful study of local customer needs and feedback .
This localization strategy paid dividends in market performance, but the strategic story did not end there. Samsung eventually announced its “Make for the World” initiative, planning to shift production from other countries and make India a base for supplying products internationally . This evolution demonstrates how initial “make” decisions can create capabilities that enable broader strategic transformations.
The learning objectives from this case study are particularly valuable for strategic management students. They include: devising methods to build brands in international markets, scrutinizing government strategies to boost domestic manufacturing, appreciating the importance of understanding local market conditions, examining product glocalization strategies, and recognizing how product innovations are vital for survival in global markets .
Beyond the India context, strategic management research offers rich insights into make-or-buy decisions across industries. A case study from the UK’s Manufacturing Technology Centre examines how REE Automotive approached the make-versus-buy decision for key components in their electric vehicle platform .
The case demonstrates that effective make-or-buy analysis requires examining impacts on quality, cost, delivery, return on investment, supply chain requirements, and facility infrastructure needs. REE Automotive worked with experts to analyze sourcing strategies, ultimately identifying opportunities to bring certain processes in-house with the added benefit of serving multiple product families or future ranges .
Similarly, research from the Indian Institute of Management Bangalore examines Britannia’s make-versus-buy strategy in the baking industry . This study proposes a framework based on cost position versus strategic value for procurement decisions, demonstrating that “make” decisions should be evaluated not only on financial criteria but also on their contribution to long-term competitive advantage.
Strategic management must also consider the intangible value associated with “make” decisions. A case study of Warwick Acoustics, a UK-based manufacturer of innovative electrostatic speakers for the automotive industry, reveals multiple strategic considerations behind their decision to manufacture in Britain .
The company identified five key factors supporting their “make in Britain” decision: the importance of co-locating manufacturing with engineering to ensure quality; access to the UK’s talent pool in high-technology manufacturing; protection of intellectual property; flexibility in responding to global trade dynamics; and sustainability advantages of manufacturing in a facility powered by renewable energy .
Similarly, 9Barista, a Cambridge-based coffee brewer manufacturer, attributes its export success—88% of products sold internationally—to its “Made in Britain” positioning . Customers in China and the USA explicitly mention the importance of British manufacturing in their purchasing decisions, suggesting that “make” location decisions can create significant brand advantage in international markets.
For students tackling Harvard Business Review case studies involving “make” decisions, a structured analytical approach is essential. A detailed guide to HBR case analysis expectations from CliffsNotes outlines criteria for “A” grade analysis . These include:
Focused purpose delineated at the beginning and reiterated at the end; clear overall report structure with logical transitions; demonstration of clear understanding and facility with knowledge beyond surface learning; well-reasoned arguments with appropriate support; complete references with proper citation; and application of core concepts from texts, lectures, and readings .
The guide emphasizes that effective case analysis avoids simply summarizing case facts, instead using concepts and frameworks to analyze what is occurring beneath the surface.
When analyzing “make” decisions in strategic management cases, students should consider:
The analysis of “make” decisions in strategic management reveals that these choices extend far beyond simple production economics. Whether responding to government initiatives like “Make in India,” deciding between in-house production and outsourcing, or leveraging “made in” positioning for brand advantage, companies must integrate multiple strategic considerations.
The Volvo Group case demonstrates that effective responses to institutional change require nuanced combinations of acquiescence and compromise rather than simple compliance . Samsung’s evolution from “Make in India” to “Make for the World” illustrates how initial localization decisions can build capabilities for global transformation . And the Warwick Acoustics and 9Barista cases show how “make” location decisions can create intangible brand value that supports international expansion .
For strategic management students analyzing Harvard Business Review case studies, the key insight is that “make” decisions must be evaluated through multiple lenses: transaction cost economics, capability development, stakeholder alignment, and institutional context. By applying frameworks like Oliver’s strategic response model and carefully analyzing both quantitative and qualitative factors, linked here students can develop the analytical skills necessary for effective strategic decision-making in global business.
