In 2004, when online video provider Akimbo decided to combine a settop box with a movie-downloading...

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In 2004, when online video provider Akimbo decided to combine a settop box with a movie-downloading service, it seemed like the perfect offering. The product and service were inextricably linked – one was worthless without the other. Sales of the DVR would drive a steady revenue stream from subscription fees, and customers wanting the convenience of downloading videos would have to invest in the hardware. But the company stumbled when it priced the less-valued component of the bundle, the set-top box, at a high $199, without understanding that the real profi t potential was in the downloading service. Things went awry when the

David · Accepted Answer

Running Head: HYBRID OFFERS
Hybrid Offers 4
Running Head: HYBRID OFFERS
Hybrid Offers
Name
Institutions
Task One: Summary of the Article
1. Common Hybrid Bundles
These following are the common Hybrid offers:
· The Flexible Bundle
· The Multi Benefit Bundle
· The One Step bundle
· The Peace of mind Bundle
2. Rules for Failure
The following are some of the rules of failure:
· The Failure to Differentiate the product
· The Failure to evaluate the market and the prices
· The Failure to invest adequately in the project
3. Rules for evaluation in consideration for hybrid offers
The following are some of the rules that companies should follow when developing hybrid offers:
· Product differentiation
· Scalability
· Brand Investment
· Pricing
4. Why the consideration by companies to offer hybrid commodities
The following are some of the advantages that make companies consider offering Hybrid Commodities
· To acquire a larger market share
· To increase the level of returns
· To gain competitive advantage over their competitors
5. Criterion for product and service differentiation
· Level of Commoditization
· Solving the customer’s problem
· Improving of product quality
6. The criterion for Scaling Products
· Centralization of services
· Digitization of service
· Duration for repurchase 
· Trade off between product and service
· Hybrid offer incentive
Task Two: Article Review
Types of Common Hybrid Offerings
Various types of hybrid offerings are highlighted in the article. Flexible bundle is one common hybrid offering that is suited for products and services that are tuned to meet unique customer needs. In most cases, these products and services are highly autonomous and consumers can easily purchase them separately. Another hybrid offering is the peace of mind bundle.

In 2004, when online video provider Akimbo decided to combine a settop box with a movie-downloading service, it seemed like the perfect offering. The product and service were inextricably linked – one...

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