unbundling

Definition

The strategic business practice of taking one product and breaking it into multiple pieces that can be sold separately at higher total cost. It's the corporate equivalent of selling a car without the wheels, then charging extra for each tire. Airlines perfected this art form, and now everyone from software companies to cable providers wants in on the action.

Example Usage

After unbundling our premium package, customers can now pay separately for features they used to get included—what a value!

Source: Business strategy terminology

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