Ben Jones

Responding to this type of disruption is hard for a number of reasons. First, replicating the unbundled offering would cannibalise revenue from a still profitable bundle. Second, the act of unbundling often requires the shedding of less attractive elements of a bundle which can require hefty on-paper write-offs. Finally, the Incumbents worldview has been shaped by years of success through a bundled strategy. Unbundling would represent a dramatic shift away from this strategy which is often inconceivable and impractical for those involved.

… providers. Enter Microsoft Office, a bundle of Word, Excel and PowerPoint, which launched in 1990. By bundling popular applications that would cost upwards of $1,500 if bought separately, and pricing the entire suite at $600, Office represented amazing value for money. No competitor could compete with the value for money Office represented which enabled Microsoft to win the market. Other factors, such as Microsoft’s ownership of the Windows…

1) Content is King, Queen, and Jack