COMMODITY BUNDLING FOR COMPETITIVE ADVANTAGE: STRATEGIC IMPLICATIONS

Abstract

Commodity bundling involves grouping related products together into a unified market offering. It is a familiar approach in a number of industries, yet strategic and structural implications are not well developed. This article presents a descriptive model of the potential advantages of commodity bundling, the fit between firm competences and customer needs, and the decision to bundle. Effects on adaptation, type of innovation, and organization structure are discussed. Managerial implications and research propositions from case studies of 16 corporations, and from strategy, marketing and economic theory are presented.