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| Tekijä: | Dana Jr., J.D. |
| Otsikko: | Remark on "Appropriateness and impact of platform-based product development" |
| Lehti: | Management Science
2003 : SEP, VOL. 49:9, p. 1264-1267 |
| Asiasana: | Product development Product differentiation |
| Kieli: | eng |
| Tiivistelmä: | When platform-based manufacturing exhibits overdesign costs then platform adoption will lead to a decrease in product line differetntiation. In contrast, Krishnan and Gupta (2001) argued that in the presence of overdesign costs and platform economies, platfom production always leads to a more differentiated product family. While Krishnan and Gupta analysed one particular parameterized cost function and define overdesign costs and platform economies narrowly in terms of their parameters, the author of this remark paper proposes a general definition of overdesign costs and shows that platform adoption reduces product differentiation for all cost functions satisfying this definition, regardless of whether or not they exhibit platform economies. |
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