That's not the same thing. The razor and blades model is where you are both selling the razor at below market prices and the blades at a markup.
"Commoditing your complements" is about you making the razor blades interchangeable where multiple manufacturers are competing to sell razor blades at low margins while you make all of the money selling razors.
Apple commoditized apps and the operating system by giving them away for free, as did Google. Microsoft commoditized PC manufacturers, etc.
> "Commoditing your complements" is about you making the razor blades interchangeable where multiple manufacturers are competing to sell razor blades at low margins while you make all of the money selling razors.
No, it would be the opposite. The product always was the blades...they were never an accessory to the handle. They entered the market because before disposable razor blades, people had to sharpen and maintain their own razor blades. They designed a razor handle merely as an instrument to hold a pre-sharpened disposable razor blade. The only value-added product they ever had was blades, they never gave a rip about the handle.
And if your product is the blades, then in the "commoditize your compliment" variation you would make the blades, and you outsource or open source the razor handles and encourage competition between razor handle makers. Much like how Ford sells cars, but they give blueprints and design specs to multiple parts manufacturers to ensure that parts are available for all the cars they sell.
> Apple commoditized apps and the operating system by giving them away for free, as did Google. Microsoft commoditized PC manufacturers, etc.
Giving things away for free isn't commoditizing the compliment, that's merely a loss leader strategy. Getting third parties to develop apps and and give them away for free or extremely low prices would be the example you're looking for.
They designed a razor handle merely as an instrument to hold a pre-sharpened disposable razor blade. The only value-added product they ever had was blades, they never gave a rip about the handle.
While I was researching before I replied, I found out the whole razer razer blade analogy was an urban myth. In fact, both the razors and the blades were expensive at first until the patents expired and (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1676444).
"Commoditing your complements" is about you making the razor blades interchangeable where multiple manufacturers are competing to sell razor blades at low margins while you make all of the money selling razors.
Apple commoditized apps and the operating system by giving them away for free, as did Google. Microsoft commoditized PC manufacturers, etc.