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Commodity Bundling For Competitive Advantage: Strategic Implications

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  • Michael W. Lawless

Abstract

Commodity bundling involves grouping related products together into a unified market offering. It is a familiar approach in a number of industries, yet strategic and structural implications are not well developed. This article presents a descriptive model of the potential advantages of commodity bundling, the fit between firm competences and customer needs, and the decision to bundle. Effects on adaptation, type of innovation, and organization structure are discussed. Managerial implications and research propositions from case studies of 16 corporations, and from strategy, marketing and economic theory are presented.

Suggested Citation

  • Michael W. Lawless, 1991. "Commodity Bundling For Competitive Advantage: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 28(3), pages 267-280, May.
    • Handle: RePEc:bla:jomstd:v:28:y:1991:i:3:p:267-280
    DOI: 10.1111/j.1467-6486.1991.tb00948.x
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    Cited by:

    1. D. Mark Anderson & Benjamin Crost & Daniel I. Rees, 2018. "Wet Laws, Drinking Establishments and Violent Crime," Economic Journal, Royal Economic Society, vol. 128(611), pages 1333-1366, June.
    2. Paulo Martins & Paula Rodrigues & Carlos Martins & Teresa Barros & Nelson Duarte & Rebecca Kechen Dong & Yiyi Liao & Ubaldo Comite & Xiaoguang Yue, 2021. "Preference between Individual Products and Bundles: Effects of Complementary, Price, and Discount Level in Portugal," JRFM, MDPI, vol. 14(5), pages 1-19, April.
    3. Tannous, George F. & Mangiameli, Paul M., 1996. "Adding features to a product: A micro-economic model," International Review of Economics & Finance, Elsevier, vol. 5(2), pages 149-173.
    4. Priessner, Alfons & Hampl, Nina, 2020. "Can product bundling increase the joint adoption of electric vehicles, solar panels and battery storage? Explorative evidence from a choice-based conjoint study in Austria," Ecological Economics, Elsevier, vol. 167(C).
    5. Mithat Üner, M. & Güven, Faruk & Tamer Cavusgil, S., 2015. "Bundling of telecom offerings: An Empirical Investigation in the Turkish market," Telecommunications Policy, Elsevier, vol. 39(1), pages 53-64.
    6. Mikkonen, Karri & Niskanen, Hanna & Pynnönen, Mikko & Hallikas, Jukka, 2015. "The presence of emotional factors: An empirical exploration of bundle purchasing process," Telecommunications Policy, Elsevier, vol. 39(8), pages 642-657.
    7. Ali Azadeh & Hassan Songhori & Nima Salehi, 2017. "A unique optimization model for deterministic bundle pricing of two products with limited stock," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1154-1160, November.
    8. Andreas Klein & Parimal Bhagat, 2010. "We-Commerce: Evidence On A New Virtual Commerce Platform," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(4), pages 107-124.
    9. Mankila, Merja, 2004. "Retaining students in retail banking through price bundling: Evidence from the Swedish market," European Journal of Operational Research, Elsevier, vol. 155(2), pages 299-316, June.
    10. V. Sanal Kumar, 1999. "Perceived Value Addition for Branded Items Launched in Commodity Markets," Vision, , vol. 3(2), pages 32-36, July.
    11. Clare D’Souza & Emmanuel K. Yiridoe, 2019. "Producer’s Self-Declared Wind Energy ECO-Labeling Consequences on the Market: A Canadian Case Study," Sustainability, MDPI, vol. 11(5), pages 1-15, February.

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