Trojan Horse: Razor Blade Model

The image shows how the video game industry-XBOX follows the Razor Blade model
  1. Gillette: The namesake of this business model sells razors as bait and blades as hooks.
  2. HP: They sell printers as bait and corresponding ink cartridges as hooks.
  3. Nestle: They sell coffee machines as bait and proprietary coffee packets as hooks to be used in the coffee machine.
  4. Sony Playstation: They sell gaming consoles as hooks and manufacture game CDs in association with developers to be sold as hooks.
  5. JioFibre: They sell internet routers as bait and data packs as hooks.
  6. Kodak: They sell cameras as bait and proprietary photo films as hooks.
  7. Nuclear Reactors: Corporations involved in the nuclear energy business bid for tenders to develop nuclear reactors at marginal costs in nations across the world which then act as baits to extract humongous revenue from governments by selling compatible enriched uranium fuel.
  8. Apple iPhone (Reverse): They sell their iPhone as the primary product and maintain a consistent revenue stream by selling paid applications on their App Store.
  9. Amazon Kindle (Reverse): They sell their Kindle e-reader tablet as bait and make a profit off the cuts on e-books published in association with various publishing houses.
  1. Designing proprietary products so that only licensed hooks can be used with the bait. This eliminates the possibility of cheaper third-party hooks to eclipse sales of high-margin proprietary products.
  2. Invoking intellectual property rights to gain a huge chunk of market share initially and sustaining it through brand loyalty or customer lock-in.

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The DTU branch of world’s largest university-based consulting firm, 180 Degrees Consulting.

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180DC DTU

180DC DTU

The DTU branch of world’s largest university-based consulting firm, 180 Degrees Consulting.

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