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Read by
BCG
500 Startups
Used at top MBA programs including
Stanford Graduate School of Business
University of Chicago Booth School of Business
Wharton School of the University of Pennsylvania
Kellogg School of Management at Northwestern University
Summary
  • Momentum is building behind the “right to repair” movement, with a recent groundswell of support from consumers and policymakers at the state and national level – including the White House and FTC.
  • The right to repair issue is about whether original equipment manufacturers (OEMs) are required to provide access to diagnostic and repair information, manuals, parts, and tools so that independent service providers and individual owners can repair equipment on their own.
  • The case for right to repair is largely centered on 5 pillars: (1) Ownership of equipment; (2) competition and consumer welfare; (3) effectiveness of independent service providers; (4) reducing waste and forced obsolescence; and (5) opportunities for small businesses.
  • The sectors in the crosshairs of the right to repair movement are consumer electronics, motor vehicles, farm equipment, medical devices and equipment, home appliances, and defense contractors.
  • OEMs will have to exert themselves more as their walled-garden monopolies begin to erode. Right to repair will foster a growing ecosystem of independent service providers, and open the door to new entrants that tap into on-board diagnostic data for modern consumer and business services.
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