Lock-in
Lock-in refers to the ability of companies to ensure their customers do not switch to competitors, thus switching costs can establish lock-in. Switching costs can be established in many ways. The usability of a product can establish lock-in for that product, as customers learn how to use the product, they don't want to reinvest in learning how to use competing products. Wall Street Journal is a good example of trying to establish this type of lock-in. It heavily discounts its product to the education market, hoping that as people get used to getting their business information via the Journal, they will continue to do so after they graduate and begin working. The user interface of digital products are another example of this type of lock-in. The airlines establish lock-in by developing frequent flyer programs. As people fly more with one
Maximizing Business Potential
