Page 144 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

It is possible to use this strategy to make your competitors’ products
obsolete. For example, by releasing a popular new computer chip
you can trigger the obsolescence of your competitors’ operating
systems.
Obsolescence is inevitable—use it to your advantage.

In practice

• Avoid triggering the obsolescence of products too frequently,

as this is often an unnecessary investment and may cause a
consumer backlash.

• Base the engineering of a product on your “obsolescence

strategy”—a product will not need to last for ten years if it will
be obsolete after two.

• Offer long-term warranties on products that will soon become

obsolete—this will reassure customers and it is unlikely the
guarantees will be claimed.

• Do not make built-in obsolescence obvious to the consumer—

this will lead to frustration and unwillingness to purchase.

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