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vi)                Complementary products

 

Complementary products are products whose sales are positively correlated with those of the products you are selling. For instance, if you are selling computers, then software will be a complementary product. If you are selling desk lamps, then bulbs will be a complementary product. Complementary products are often called “captive products” and sometimes yield the main source of profits.

 

Example: the video games industry

 

When producing and selling its video game console PlayStation 2, Sony realized losses on each unit sold, making all the profits on its sales of related video games. Therefore, this constitutes a perfect example of complementary products as unique drivers of profitability.

 

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