BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

Explaining the Smile Curve of Raghuram Rajan



  Dec 23, 2023

Explaining the Smile Curve of Raghuram Rajan



The smile curve is a concept that illustrates the value addition in different stages of a product’s lifecycle. Imagine a smiley face; the value addition is represented by the shape of the smile. The tips of the smile are high, indicating high value, and the bottom of the curve is low, indicating low value.

Let’s break it down:

High-Value Ends: These are like the corners of a smile, where the value is highest. For a product like an iPhone, this includes the creation of new ideas, designs, and unique software—things that require creativity and innovation.

Low-Value Middle: This represents the bottom of the smile where the value added is lower, typically manufacturing. It’s seen as less valuable because it’s more about following instructions to assemble the product, which many companies can do.

Full Curve Ownership: If a company wants to “own” the entire smile, it means they want to excel in both high-value creation (like research and development) and in efficient manufacturing.

In essence, a company like Apple focuses more on design and innovation at one end and marketing and selling at the other, both high-value stages, while outsourcing the manufacturing, the less valuable part, to other companies. SRIRAM’s


Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
DEEP MACHINE LEARNING
 
MACHINE LEARNING
 
NON-AGRICULTURAL INFORMAL ENTERPRISES
 
MUNICIPAL BODIES:FINANCIAL CHALLENGES
 
CHANDRAYAAN-3: A YEAR of ACHIEVEMENTS
 
VIZHINJAM: INDIA’S FIRST DEEP-WATER TRANSSHIPMENT PORT
 
‘AANKH MICHOLI’
 
CHINA FACTOR IN INDIA-RUSSIA RELATIONS
 
CVF and climate finance negotiations
 
CBI JURISDICTION AND STATE CONSENT
 
Beej Utsavs (Seed Festivals)
 
SILK ROUTE THROUGH KALIMPONG AND SIKKIM
 
RHODODENDRON NIVEUM, THE STATE TREE OF SIKKIM
 
OPERATION DHANUSH NEAR LOC
 
French Revolution and India