The article "Adopt, Buy, Create (ABC): A Strategic Framework for Capability Acquisition" from mcleanforrester.com is a must-read for business leaders looking to scale efficiently. The piece breaks down a simple yet powerful approach to acquiring new capabilities—whether through adoption, purchase, or creation—and provides a clear roadmap for strategic decision-making. If you haven’t read it yet, I highly recommend checking it out.
In this opinion piece, I’ll expand on why the ABC framework is so effective, how businesses can apply it, and where it fits into modern corporate strategy.
The Power of Simplicity in Strategy
One of the standout qualities of the ABC framework is its simplicity. Business strategy can often become overly complex, filled with jargon and convoluted models that obscure rather than clarify. The Adopt, Buy, Create approach cuts through the noise, offering a straightforward way to evaluate how a company should acquire new capabilities.
Adopt – Leverage existing internal resources or processes.
Buy – Acquire external solutions, whether through partnerships, licensing, or outright purchases.
Create – Develop new capabilities in-house when no suitable options exist.
This structure forces leaders to think critically about the most efficient path forward rather than defaulting to familiar (and often costly) approaches like in-house development or expensive acquisitions.
Why "Adopt" Should Be the First Option
Many companies overlook the potential of internal adoption. Before spending money on external solutions or investing in new development, businesses should assess whether they already have the necessary skills, tools, or processes lying dormant within their organization.
For example, a company struggling with project management might rush to buy expensive software when, in reality, retraining existing staff or optimizing current workflows could solve the problem. The ABC framework encourages leaders to look inward first—saving time and resources.
The Case for Buying vs. Creating
The Buy option is often the most practical for fast-moving industries. Startups, in particular, benefit from purchasing ready-made solutions rather than reinventing the wheel. Cloud computing, SaaS tools, and outsourcing have made it easier than ever to plug gaps without heavy upfront investment.
However, mcleanforrester rightly points out that buying isn’t always the best choice. If a capability is core to competitive advantage—think Coca-Cola’s secret formula or Apple’s chip design—then Create may be the only viable path. The key is knowing when to build and when to buy.
Where the ABC Framework Fits in Modern Business
This framework aligns perfectly with agile methodologies and lean startup principles. Businesses today need to be nimble, and the ABC model provides a structured way to make quick, informed decisions about capability acquisition.
It also complements other strategic models, such as:
SWOT Analysis – Helps identify whether a capability gap is a weakness or an opportunity.
Porter’s Five Forces – Determines if buying or creating a capability affects competitive positioning.
Blue Ocean Strategy – Encourages innovation (Create) when entering uncontested markets.
By integrating ABC into these frameworks, companies can make more holistic strategic decisions.
Final Thoughts
The ABC framework from mcleanforrester is a refreshing take on capability acquisition. It’s practical, easy to understand, and applicable across industries. Whether you’re a startup founder or a corporate strategist, this model can help you make smarter, faster decisions about how to grow your business.
For more insights on strategic growth, check out other articles from mcleanforrester.com, such as their piece on scaling operations efficiently or choosing the right business partnerships.
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