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Companies like Apple and Amazon use a variety of strategies to increase customer willingness to pay and decrease employee willingness to sell. One such strategy is the creation of complementary services or products. By offering a core product at a low price or even for free, these companies can increase the perceived value of complementary products, thus increasing the customer's willingness to pay for them. This strategy also helps to protect overall margins when competition intensifies. Another strategy is the continuous innovation and improvement of products and services, which not only increases customer willingness to pay but also fosters employee loyalty and decreases their willingness to sell.
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Ever wondered what strategies make Apple, Amazon, and other juggernauts so successful? Better, Simpler Strategy by Felix Oberholzer-Gee shares top ins...
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Companies that make their own complimentary services can shift profits from one product to another. Gillette gives away its ""core product,"" the razor, in return for substantial margins on the complementary product blades. Microsoft barely makes money from consoles. When the competition heats up, they can drop product prices and raise WTP of complements to protect overall margins.
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