He talks a lot about how other companies are incompetent or inefficient and says that this is why it is often better to build in-house. I think the reason this

He talks a lot about how other companies are incompetent or inefficient and says that this is why it is often better to build in-house. I think the reason this doesn't happen to the degree that would be most efficient is people assume the counterparty business is acting in long-term self-interest as a single unit (i.e., a business with a reputation to maintain). In-house, there's almost always someone you can get in touch with has the ability to enforce this behavior on your counterparty - when you're buying something externally, that's not the case. There are so many examples of large, well-known brands that made a name in quality and then sacrificed their reputation to cash in.