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Capitalism: Free market hurts
  • After Solo collapsed, 3DR’s Guinn told Forbes that DJI’s vertical integration — the fact that it both designed and manufactured its own hardware — had represented an insurmountable obstacle. “What we realized is that it’s just going to be inherently much more difficult for a Silicon Valley-based, software-focused company to compete against vertically integrated powerhouse manufacturing company in China,” he told Forbes.

    Woodman echoed that sentiment. “In the drone space specifically to be competitive, and make money doing it, I think a company would need to be vertically integrated,” he said. “Because that’s what DJI is. That’s what you’re up against. And they’re going to be able to make a profit at lower retail price points than anybody who isn’t vertically integrated.”

    Surprise. Vertical company with planning and no free market inside wins.