The first step in managing relationships with complementors is to develop a deep understanding of their economics, their strategies and goals, their existing capabilities, their incentives for cooperation, and any potential areas of conflict. Airlines, for instance, would be happy to see vacation lodgings go for a song, while destination resorts could raise rates and still fill their rooms if customers could fly there for free. Ideally, you’d like to price your goods high while your complementors price theirs low. The issue of pricing perfectly captures this tension. ![]() ![]() Nothing could be further from the truth.ĭiscord can develop in many areas, such as pricing, technology, standards, and control of the market-both in terms of which company has the most influence over customers and which one gets the biggest slice of the pie. So it’s not surprising that so many just assume that their interests are aligned. Complementors increase the value of each other’s offerings and the size of the total market. They are probably the world’s most widely known pair of complementors-companies that independently provide complementary products or services to mutual customers. ![]() ![]() Intel and Microsoft neither buy from nor sell to each other directly, but they are undeniably in business together.
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