Switching Costs (Blogmas 3)
Breaking down switching costs from Apple and Android Phones, as well as McDonalds and Burger King.
Gotta put my business major hat on!
Switching Costs is the topic today
So the cost to switch from one option to another.
Apple to Android. Pretty high switching costs.
Apple creates this walled garden of iMessage, FaceTime, Macbook Airdrop compatibility, AirPods, etc. They create this list of reasons why you shouldn't switch to an Android phone.
Since this is a food page. Let's look at large fast food chains McDonalds vs Burger King.
This is low switching costs. Similar fast food items, similar price, etc. And low enough you could just walk over to a different and superior option like In-N-Out burger (if you're on the west coast).
To help minimize switching costs. Competitors usually just copy each other.
Apple to make wireless headphones (AirPods) and a smart watch (Apple watch)
Google will respond with the Pixel Buds wireless and Pixel watch.
McDonalds to offer with the Double patty, chicken option, and ice cream
BK will offer a similar alternative.
This is to make it easier for customers to switch. Trying to convince them to come to the other side.
One Key and Peele skit that really highlights low switching costs between restaurants is this one below. They were truly ahead of their time.
Next time you go out, think about switching costs. Is it easy to go from one place to another? To try this product over another?
But at the end of the day, some people just like a certain thing and might never switch.
Hope you learned something and/or enjoyed this!
-Albert
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-Albert