Both procedures aim to increase profits. Outsourcing is employed to succeed lower labour cost or, even better, operational cost. It is supposed that always some routine, low-skilled work could be outsourced bringing benefits on both sides. Indeed, many companies believe in this policy because its results are instantly obvious to everybody. Overall, US economy has the biggest rate of outsourcing.
Spread the word..
Advertising is the old traditional way to spread the word and establish a brand. Tones of money are spent for some reputation. However, many advertising campaigns are worth nothing because their decay is faster-than-exponential. The idea is that as long as it is visible, it exists.
Its value is all that it needs..
None of these business procedures are necessary for a product or service to dominate in markets. Even more, quick profits coming by outsourcing may destroy a successful production line. In some cases, outsourcing means lose of control, particularly, for identity products. On the other side, the best advertisement ever made is the product itself, its value is all that it needs. Actually, very targeted advertising is necessary in order to trigger the reinforcement.
Every market is different..
There are no general rules and the imitation is, just, lack of judgement. Repetition and periodicity stabilize a market. The collapse comes because there is no think tank that can calculate the factor which changes the founding fundamentals of that market.
How much is this business worth?
All right.. All right.. a company is worth more than the price of its stock. But, who or what is that more?