.......a journey called life

• Retailers have to stock more phone hence run larger stores hence marking up higher
• Consumers will be confused like hell when they would come to purchase a phone. They came to look for a phone which would help them call from Point A to Point B. Instead, they were confused amongst millions of Value Added Services and Peripheral Features to choose from! I pity on him! It has been proven by research that more variety leads to lower consumer purchase!
• More Assortment leads to higher SKUs at the manufacturer and makes the distribution costlier.

But why are they doing it?

• A new phone commands a higher price and hence higher profit because it’s essentially the same old phone from inside hence cost the same.
• They feel that consumer will perceive their company to be innovative if they keep coming with new launches.
• They keep vying for the growing market share and one way to go for it is to launch a model especially for them.

Can we stop this?

Not we but they can! They can stop fighting like dogs and let us live in peace. But then no one talks to each other and game theory has made things even more difficult! They act on cues and everyone is trying to find that one extra incentive to break the equilibrium. For gods’ sake, I don’t need 27 varieties of shampoo to choose from. Even though collusion is illegal but I guess collusion in this market is the need of the hour. Let them collude and let us live!