physical-products

69 bookmarks · page 1 of 2
2026-09-18 · wattfactory.substack.com

The Variety Trap

Why Margins Collapse Where Product Variety Explodes, And How Assembly Can Win Them Back

In much of the West, the importance of these close relationships was lost, with competitive bidding and more transactional relationships becoming the norm.
In this model, vertical integration is not about owning everything. It is about owning the layers of the stack where outsourcing would slow learning, limit final integration or affect product performance.