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Class 4: Product Architecture

Class 4: Product Architecture. October 2006. Product Platform Strategies: Examples. Strong Interdependence. Weak Interdependence. PISTOL DRILL. STRAIGHT DRILL. ANGLE DRILL. Market Share Calculations IR has a nominal share of 30%. Branding IR only: no change

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Class 4: Product Architecture

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  1. Class 4:Product Architecture October 2006

  2. Product Platform Strategies: Examples

  3. Strong Interdependence Weak Interdependence

  4. PISTOL DRILL

  5. STRAIGHT DRILL

  6. ANGLE DRILL

  7. Market Share Calculations • IR has a nominal share of 30%. • Branding • IR only: no change • ARO w/label or cosmetic differences only: +5 % pts • ARO w/substantial differences (e.g., different housing): (+8 % pts for pistol, +6 % pts for straight and angle) • Outsourced economy product: -10 % pts of share in economy market • Downward substitution (e.g., precision housing on standard product): • +Y % pts for lower segment from increased perceived quality (0% motor, 1% anglehead, 3% housing, 3% chuck) • - X % pts for upper segment from cannibalization(0% motor, 0% anglehead, -5% housing, -3% chuck) • Upward Substitution (e.g., economy motor on standard product) • -Z % pts for upper segment from decreased perceived quality (-10% motor, -5% anglehead, -5% housing, -10% for chuck)

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