Posted By:
Marc S.There are many technological arenas where this is quite prevalent. A famous example that I've studied is the printer industry. The manufacturer -- seeking to expand market share into the "value" segmentation, produced the very same printer, with an extra device (e.g. more cost than the original) that essentially slowed the printer down by 50%. They were then able to sell the printer for 1/2 of what they sold the original printer for, thus exapnding their overall market. Obviously they made less margin on the second printer -- but they still made a profit. Seems kind of silly -- but it worked very well for them, and numerous others.....