Fisker’s Fabless Car Company
In the semiconductor industry, "fabless" chip companies design chips but outsource the manufacturing to contract manufacturers. Can the same be done in the auto industry? Fisker Automotive is trying to do just that — as profiled here. Some very good lessons about business models and strategy:
Business models and strategy are closely related concepts — how a company makes money and which activities it chooses to engage in. Like other car companies, Fisker will still sell cars — but engage in a very different set of activities than traditional automakers.
Fisker is outsourcing nearly everything — engineering, components, manufacturing. What are they keeping in house? Marketing and design. This approach allows Fisker to get started with much less capital, although it remains to be seen how much capital it will require to get them to a sustainable model. The profile is well worth reading.
