The Tech Strategy Podcast
Why Microsoft's Bundles Are So Powerful. As Slack Found Out. (212)
Jul 2, 2024
The podcast discusses how Microsoft uses bundles to gain an advantage, with a focus on their dominance in the tech industry. Topics include the ethical implications of bundling digital goods, Microsoft's shift towards cloud services, and the need for regulatory interventions to maintain competition. It also briefly mentions food-related illnesses and vacation challenges in Bali.
44:39
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Quick takeaways
- Bundling products creates short-term market advantages by offering added value to customers.
- Long-term customer value is built by bundling comprehensive solutions, hindering competitors in the marketplace.
Deep dives
Bundling as a Short-Term Tactic for Market Dominance
Bundling can be a powerful short-term tactic for companies to gain market share and potentially eliminate competitors. Microsoft's strategy of bundling products such as Office and Teams has led to significant market shifts, such as the impact on Slack's competitiveness. By offering these bundles, customers perceive added value, making it challenging for standalone companies to compete effectively.
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