You never know where you’re going to find examples of how the market self-regulates to create its own efficiency without (or more accurately despite) government controls. For example, A new blog on Micro-ISVs and start-ups by entrepreneur Harry Schechter deals primarily with Independent Software vendors. However, I just came across a great post that he wrote back in September explaining the real reason for all the generic “store brand” products sitting on drug store shelves.
It seems SchechterTech was looking for a new device and couldn’t decide whether to purchase them in bulk or manufacture the items themselves. After doing a little research and getting a quote from an existing manufacturer they went ahead and made some themselves. But that’s not where this story ends! They then took the extra step of taking their newly developed product to the old vendor and promptly received a new quote that saved them almost 30% on the original manufacturers product! That’s a huge market advantage.
Moral of the story: when faced with an “either/or” decision, don’t forget to consider the wisdom of doing both!