Question

In: Economics

There is an analogy between Google’s strategy of providing a modifiable version of the Android operating...

There is an analogy between Google’s strategy of providing a modifiable version of the Android operating systems to the marketing strategy concerning razors and razor blades. Discuss the marketing concept and are there other products/industries avail themselves (or might avail themselves) of this business strategy?

This is a discussion-based question, I am not hoping for an exact correct answer. It is more opinion-oriented with back up information to prove the point. I would just like some insight from other on the topic to further help my understanding. Thank you!

Solutions

Expert Solution

Google's android and Razor products are example of modular/open system products- products that can be modified in a way that allows their integration with other products. As google allows android to be modified, many other companies such as Samsung, Sony etc modify it according to their needs and also add their own software in it. Many other companies create their own apps which run on the platform, like plag and play.

Similarly, razors and razor blades are also like that. Many different types of razor blades can be fitted on one type of handle.

This flexibility of open system allows them to work with many different related complementary products. This effectively makes it a multi purpose product- expending its usage and life. This is not possible in a closed system. It allows the users flexibility in the way they use it, the accesories they put into it and the price they pay. This can be a very succesful strategy if the userbase is high enough and there are many such modular accesories available.

Another example of such strategy would be Linux, an operating system that allows people to modify it and use it as they see fit. Alienware PC systems also allow addition of any type of hardware in the pre built PC builds.


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