2 ms·
Creating switching costs is in fact a regular market strategy and is certainly more than just doing something so well that people will have trouble giving it up
by c0riander 15y ago
Creating switching costs is in fact a regular market strategy and is certainly more than just doing something so well that people will have trouble giving it up.
Facebook has switching costs because all your friends are on it, not on another network, plus you'd have to learn a whole new set of privacy settings, right? The Kindle has switching costs because all your books are in your Kindle library and you can't transfer them to the Nook. Moving has switching costs because you have to give people a new address, learn a new neighborhood, memorize new driving routes, etc.
Strong businesses often have very natural switching costs built in.
http://en.wikipedia.org/wiki/Switching_costs http://en.wikipedia.org/wiki/Switching_costs
- napierzaza 15y agoThere will always be a switching cost, even just remembering a new URL. Surely companies do things to make the switching cost higher. Like as you said, locking ebooks to a particular device. But creating a service or feature that is only on your platform just means you're doing something no one else is doing; making you more attractive to consumers (and creating a higher switching cost).