Advantages of the hybrid offering
A perfect combination of different kinds of products and services is called a hybrid offering. For example, iPods and iTunes are used jointly. Still, Apple Inc treats both the products and services individually and offer consumers personally. The ultimate reason for choosing the strategy of hybrid offering is to increase sales. Releasing collaborated products separately is an effective strategy for organizations to attract new consumers with attractive prices and offers.
Advantages of the hybrid offering are as follows:
- Attractive offer for the new customers: selling different features of the same products differently in the market attracts the new customers who have not bought the previous one. It helps to expand the range of target customers.
- Increases sales revenue: Offering hybrid products to customers increases the sales of the product. Selling products individually in a different market ensures an enhancement of sales revenue.
Disadvantages of hybrid of the hybrid offering are as follows:
- Increases budget: Planning to sell hybrid products individually in a different market with a brand new strategy grows the operational budget. Moreover, it can increase add on charges on each hybrid products.
- Maintenance risk: Hybrid offerings increase maintenance risk as it requires different experts for both parts of products.