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by rmrfstar
2021 days ago
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Take a look at the issue from another point of view. Predatory pricing and bundling are two destructive ways to compete. Predatory pricing is just dumping. You sell something below cost until your competition goes out of business, then you either raise prices or hold prices constant but reduce quality (eg Amazon selling counterfeit books). Bundling is requiring people to purchase A+B in combination. An example would be a gourmet ice-cream maker that is actually famous for chocolate but only sells 50% chocolate, 50% vanilla. You can see this move as a combination of bundling and predatory pricing. Microsoft did this with Defender too. Their strategy is to starve nascent competitors for revenue in a niche area so they can never mount a direct attack on the core business. |
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I can't think of one example of a company killing a competitor via free products and then raising prices.
And let's not pretend Amazon's counterfeit book problem was part of the business plan.