Commonality Over Cannibalization: Why It Makes Sense

Overall QualityMore often than not, companies want consumers to focus on certain parts of their products. Not everyone is capable of doing an Apple and breaking down their device because every component is impressive in quality. So, as a compromise, they focus on this one “thing” that’s supposed to make everything better. It’s a technique.

But, a study showed the dominant “nondominating” attitude of consumers when it comes to the things they buy. This means that they are likely to choose something because it agrees with them, albeit on a less technical level. As a result, they care more about the finished product rather than what makes it up, which will have an effect on manufacturing costs. This is where common components come into the equation.

Common, But Not Inferior

You need to have a big picture perspective here. Common components are not exactly the best selling point, but they could improve the overall quality of your products. More than that, manufacturing consistency will play a big role in the integrity of the parts. This is why if you can delegate all component manufacturing duties, especially ones that need precision Swiss machining, to one machinist, you should.

What’s the benefit here? For starters, it would be less costly to run the production line and it’s easier to revamp existing programs. The biggest merit here is for a product with different variations and preventing customers from cannibalizing the products. If one product has that one better component, and the rest is average, what leverages a buyer to buy the lesser product? On the other hand, if you use common components, you can market the whole product and separate them by their price brackets.

Take computer parts, for example. One company makes motherboards in different price ranges, and it works out pretty well. There is a fine line between one product and the other. Either your customers choose this one or the other because it’s what they can afford. In addition, it’s important to stress that the quality must be steady across the board.

Like any production strategy, it’s wise to take this method with a healthy amount of skepticism. If this method proves to be viable for you, integration must start early.