coupling

What Is Coupling And Why It Matters In Business

Business / By / July 4, 2020

As startups gain control of new markets. They expand in adjacent areas in disparate and different industries by coupling the new activities to benefits customers. Thus, even though the adjunct activities might see far from the core business model, they are tied to the way customers experience the whole business model.

Amazon Prime case study

amazon-prime-video-revenue-model-explained

Example of how Amazon expanded in an adjacent area, like media and content with Amazon Prime. At first sight that might seem completely unrelated to the Amazon business model.

Amazon Prime offers premium content available on its streaming platform. And yet, it also bundles up free delivery, which makes the repeat purchases on Amazon e-commerce much more convenient. Thus enhancing its overall business model.

Similar business phenomena

Unbundling

unbundling
Unbundling is a business process where a series of products or blocks inside a value chain are broken down to provide better value by removing the parts of the value chain that are less valuable to consumers and keep those that in a period in time consumers value the most.

Disintermediation

decoupling
According to the book, Unlocking The Value Chain, Harvard professor Thales Teixeira identified three waves of disruption (unbundling, disintermediation, and decoupling). Decoupling is the third wave (2006-still ongoing) where companies break apart the customer value chain to deliver part of the value, without bearing the costs to sustain the whole value chain.

Decoupling

decoupling
According to the book, Unlocking The Value Chain, Harvard professor Thales Teixeira identified three waves of disruption (unbundling, disintermediation, and decoupling). Decoupling is the third wave (2006-still ongoing) where companies break apart the customer value chain to deliver part of the value, without bearing the costs to sustain the whole value chain.

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