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

 
GENERAL ESSAY CIVIL SERVICES MAIN EXAM 2025
 
Nepal's New Currency Note Might Upset India
 
INDIA’S FIRST ANALOGUE SPACE MISSION:LADAKH
 
K-RAIL: SIMPLIFIER
 
2025 Census and Its Importance
 
HOKERSAR: THE QUEEN OF WETLANDS AND KASHMIR’S AVIAN AIRPORT AT RISK
 
COP16 BIODIVERSITY in COLOMBIA and INDIA
 
INDIA’S METHANE DIPLOMACY AND COP29: IN PERSPECTIVE
 
Irawati Karve: Indian Anthropology & Sociology
 
COP16 BIODIVERSITY SUMMIT,COLOMBIA : SUCCESSES AND SETBACKS
 
MUGHAL FLOWER PAINTINGS :JAHANGIR
 
Zero Budget Natural Farming (ZBNF)
 
DIGITAL TRANSFORMATION IN RURAL INDIA: DICSC CENTERS
 
JUSTICE K.G. BALAKRISHNAN COMMISSION EXAMINING SCHEDULED CASTE STATUS FOR DALIT CONVERTS
 
INDIA’S BIOFUEL JOURNEY: SUSTAINABILITY AND ENERGY INDEPENDENCE