Research: Common component strategy could improve profits
CHAMPAIGN, Ill. — When designing product lines, one important decision marketing and manufacturing managers must consider is whether to use common or product-specific components. While the use of common components can reduce manufacturing costs, firms have traditionally shied away from that strategy over concerns of intensifying what scholars call "product cannibalization."
But according to research from two University of Illinois business professors, commonality can actually reduce product line cannibalization, a finding that could allow firms to redesign their product ...