Bundling is the process of combining multiple products or services within a unique offering. Unbundling is the opposite; it consists of taking one part of an offering (often the most valuable) and provide it as a stand-alone product and service at a more reasonable price. Bundling is usually effective as an expansion strategy, as more products and services are added. Unbundling instead works well as a market entry strategy. The newcomer can take only the part of an incumbent offering, break it apart, and offer that as a lower-priced alternative to quickly gain traction.
Read Next: Bundling, Unbundling.
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking.
More Strategy Tools: Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework.
Connected Business Concepts And Frameworks
Horizontal vs. Vertical Integration
Read Also: Vertical Integration, Horizontal Integration, Supply Chain.