Modular Machine Tools: Bundling and Pricing Strategies under Demand Uncertainty
ISBN/ASIN: 9783824464777,9783663087731 | 1997 | German | pdf | 158/163 pages | 2.40 Mb
Publisher: Deutscher Universitätsverlag | Author: Nils Tönshoff (auth.) | Edition: 1
German machine tool manufacturers are increasingly confronted with difficulties in gaining competitive advantages by offering highly customized products. But necessary cost reductions can be obtained by employing a modularization strategy that explicitly considers customers' requirements already in the module design stage. Nils Tönshoff presents a new framework of the machine tool building and selling process that accounts for optimized cross-functional decision making in module design, machine tool manufacturing and product marketing. The tradeoff between customization and standardization is balanced by a bundle pricing strategy based on a modular product structure. The analytic tool developed by the author has been validated by a major German machine tool manufacturer.