Make-or-buy decisions refer to the process businesses use to determine whether to produce a product or service in-house or purchase it from an external supplier. This decision involves evaluating factors such as costs, quality, and the availability of resources. Companies aim to choose the option that maximizes efficiency and profitability. In making these decisions, organizations often consider their core competencies and strategic goals. For instance, if a company specializes in manufacturing but lacks expertise in software development, it may opt to buy software from a vendor rather than develop it internally. This approach helps businesses focus on their strengths while managing costs effectively.