1 / 9

COMPETING AGAINST FREE

Discover effective strategies for businesses to thrive in a market where free products pose a threat. Explore tried and true methods such as up-selling, cross-selling, charging third parties, and bundling. Rethink profit centers and redefine product offerings.

cinthiaw
Download Presentation

COMPETING AGAINST FREE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. COMPETING AGAINST FREE Robbie Sander Erik Anderson

  2. INTRODUCTION • What are some of the best free products you have used recently? • Do you believe it was a better product offering than something you could have paid for?

  3. ASSESSING THE THREAT • Three factors • Ability to cover costs • Skype • growth rate- 40% • rate of defection- 5%

  4. Choosing Whether and When to Respond

  5. Offer a Better Free • When? • How? • Failure to respond... • The saga of Yahoo vs. Gmail

  6. Four Tried and True Strategies • Up-Sell • Offer a free product, then charge for a premium product Example: Phone apps • Cross Sell • Sell products that are not directly tied to the free product Example: Ryanair • Charge Third Parties • Provide a free product and then charge a third party for access Example:Google • Bundle • Offer a free product or service with a paid offering Example:HP- Buy a PC get a Printer

  7. Rethink Profit Centers • First Obstacle: Products are viewed as the profit center • Second Obstacle: Accountability structured to focus on products as a profit center.

  8. Questions • As a college age consumer, what characteristics are necessary for you in a product to justify spending money on it?

  9. Article Link http://classes.bus.oregonstate.edu/ba499/elton/Articles/Competing%20against%20Free.pdf

More Related