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Syllabus C. Strategy C5. Strategic Choices

C5c. Lock-in Strategy

Lock in Strategy

The idea behind this is that when a customer purchases once from the company they are effectively “locked in” to buying from them in the future
  • Eg Microsoft Office package

  • Eg Apple iTunes

It often means being the ‘industry standard’

These type of strategies are now less of a stronghold as they once were.

Only a few years ago the Microsoft “Windows” operating system would have been a great example but it is now quickly losing its grip on the market.

The same can be said of iTunes for Apple

Another form of lock in is the purchase of an item with a long UEL.

This effectively ensures that all repairs and servicing is through that company too

Evernote

The idea here is that customers become locked in, using the product for free. 

They have no desire to use another similar system because all their old usage is all in the Evernote system.

Similar to Microsoft Office and Apple i-tunes etc