Recent developments in the software industry to show you some of the reasons why companies offer their products or services in bundles. One is to take the opportunity to market power, as Microsoft has done well by bundling software applications with its operating systems. Another reason for bundling is the economy of scale as this. Due to the emergence of software suites and the shift towards wide online players (Microsoft, Lotus, WordPerfect and Borland) But it seems even more t … Read more »
Recent developments in the software industry to show you some of the reasons why companies offer their products or services in bundles. One is to take the opportunity to market power, as Microsoft has done well by bundling software applications with its operating systems. Another reason for bundling is the economy of scale as this. Due to the emergence of software suites and the shift towards wide online players (Microsoft, Lotus, WordPerfect and Borland) But it seems even more to join: individual software programs will continue to be offered in addition to suites, and suites are at a steep discount on the total price for each program
priced.
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from
Adam Brandenburger,
Vijay Krishna
Source: HBS Premier Case Collection
3 pages.
Release Date: 19, March 1991. Prod #: 191177-PDF-ENG
Bundling HBR case solution
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