'Make' refers to a companies decision to manufacture or develop (parts of) a product internally. Reasons favoring 'Make' decisions are: * ''Strong linkage between activities'' ** If it is crucial for a company to tightly integrate different activities of its [[Value chain]] then the activities should be performed internally if it is the only way to achieve such integration. ** Creating these linkages help firms to provide superior customer benefit * ''Confidentiality of information'' ** Sharing information may undermine the firm's competitive advantage. * ''High [[Transaction costs]]'' ** Transaction costs arise because buyers and sellers have diverging interests: the seller wants the highest price, a buyer wants to keep the costs down.To avoid [[Opportunistic behavior]] a company needs to select the right partner. Factors that determine [[Opportunistic behavior]] are: *** [[Asset specificity]], refer to investments that need to be made in order to setup a transaction between two or more parties. An example is the creation of an electronic data interchange (EDI) system before electron transactions can be made. After choosing a system there is a vendor lock-in. *** [[Information asymmetry]], Often a buyer lacks vital information about a seller because it does not know the track record of the seller and vice versa.