Build vs Buy · Build vs Buy · Hard · 35-45 min
Build or License a Software Platform
Build or License a Software Platform is a hard Build vs Buy build vs buy case interview that runs 35-45 min. An automotive company wants a connected-vehicle software platform (telematics, OTA updates, in-car services). A strong answer works through 5 phases: Decide what is genuinely strategic / differentiating (build) vs commodity (buy); Assess capability honestly; Compare on total cost, time-to-market, control of data/roadmap, and switching risk; Consider partner/JV structures as a middle path and who owns the IP and data; Recommend an approach.
Last updated 2026-09-05
The brief
An automotive company wants a connected-vehicle software platform (telematics, OTA updates, in-car services). It can build in-house, license from a specialist vendor, or partner. Building gives control but the company has thin software talent; licensing is faster but cedes the customer data and roadmap. The CEO sees software as strategic to future margin. You advise on build, buy, or partner.
How to approach it
- Decide what is genuinely strategic / differentiating (build) vs commodity (buy)
- Assess capability honestly — does the company have the talent, and can it attract it
- Compare on total cost, time-to-market, control of data/roadmap, and switching risk
- Consider partner/JV structures as a middle path and who owns the IP and data
- Recommend an approach — possibly build the differentiating layer, buy the commodity base
What a strong answer does
- Splits the stack — build the strategic/differentiating layer, license the commodity plumbing
- Is honest about the talent gap and whether 'build' is even feasible on the timeline
- Weighs control of customer data and roadmap as strategic, not just cost
- Surfaces vendor lock-in and switching cost on the 'buy' side
- Treats partner/JV as a real option with explicit IP/data ownership terms
Red flags interviewers score down
- Decides on cost alone, ignoring strategic control of data and roadmap
- Assumes the company can build despite no software capability
- Ignores lock-in and switching cost when recommending license
- Treats it as all-or-nothing rather than layering build and buy
Cases are written in each firm's style, written and reviewed by working consultants; they are not the firms' own published cases.