Biology of Business

Concept · Consulting & Mba Frameworks

Make vs Buy

Origin: Operations/strategy

By Alex Denne

Biological Parallel

Plants face a make-vs-buy decision with nitrogen: synthesize proteins from atmospheric nitrogen (expensive, requires nitrogen-fixing machinery) or acquire it from soil bacteria via root nodules (cheaper but dependent on external partners). Legumes chose "buy"—they trade carbohydrates for nitrogen with rhizobia bacteria. The decision hinges on whether internal production costs exceed partnership overhead plus dependency risk.