ExperienceCurve by Karl Long

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Social Media and New Marketing Strategy

products as nodes

Understanding and designing products as nodes can be an important source of competitive advantage, a network of products that “adds” value to one another is far harder to duplicate or imitate by competitors. This is beyond the concept of “lock in” or “switching costs”, both those concepts are useful, but if you set out on a project to try and achieve high switching costs you are risking alienating customers faster than you can lock them in (this ties back nicely to the other aspect of Experience Design of the “balanced value equation)”

The McKinsey Quarterly has published an interesting article that looks at different levels of integration and helps describe the different types of value derived from bundling.

“Companies can earn higher margins or increased revenues by selling integrated offeringsóif they donít merely bundle their products.”
“When a company offers true solutions, its investment can pay off in several ways. Besides generating higher margins for itself and additional value for customers, it might find that it can build longer-lasting and more profitable relationships with them”

Here’s the article:
Solving the solutions problem

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