Cynically internal markets sound a lot like "divide and conquer of competing subdivisions to redirect ambitions away from you" tactic used by dictators, most in

Cynically internal markets sound a lot like "divide and conquer of competing subdivisions to redirect ambitions away from you" tactic used by dictators, most infamously Adolf Hitler. The closest valid use I can see is comparing the open market to your internal costs - if outside sellers can provide better services for a lower bottom line go with them instead of trying to go vertical. (Obviously there are industry specific caveats like if it is worth keeping some worse margin internal suppliers for the sake of reliability even if it is more expensive.)