Amazon does apply that model internally. This is arguably why Amazon is as successful as it is: Bezos turns internal products into external products. AWS starte

Amazon does apply that model internally. This is arguably why Amazon is as successful as it is: Bezos turns internal products into external products. AWS started as an internal product. In order to keep it competitive with external offerings, they opened it up to external customers. If AWS fails to compete in the market, then Amazon knows it can get a better price by outsourcing.