18 November, 2013

1-1-12 value creation: Together – Alone

I want just to remind you that you should really digest these posts and immediately apply these ideas to the current ideas you are working on, not just to enjoy reading this and be happy that you understand this so easily. I tell you now: they are F easy, and you are no genius, it is all about effort and applying these theories to a practical applicable idea

The term we are speaking of now is called "Bundling – Unbundling"

It is almost the same as the previous term: you take an offer, and break it down "Unbundle it" to many small offers, and sell them individually or may be group them in different ways to form "Bundles" 

"Bundling" means that you group many values in one offer with extra added-value to them (like discount). A reason of doing that may be that many customers usually buy these values together and it would be very appealing to them to have them gathered for an added-value

Let us set some examples:
-         Bundling: think of the mobile service: you may but the smart phone + the line + a business plan. The total price is less than the sum of each of them
-         Unbundling: think of iTunes: take the audio-CD and break it down to single tracks and buy them individually
The benefit of that we have already talked about: to create value for different types of customers,  and to test your values: what would be the best offers and values to make them the main offerings and what would be best fit as side-offerings

N.B. There are a lot of not-so-smart guys who are just so immersed in labels and all the care about is what the difference between this term and that term. For the GOD's sake labels are just words and voices. It doesn’t matter at all. Understanding the meaning, digesting and applying it is more than enough :)