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Definition: Unbundling

Unbundling is breaking the bundle and dividing it in smaller parts.

It can be used in various contexts:

• In context of companies unbundling is selling off other lines of business and retaining the core business usually for performance measures or by government regulation.

• In context of service or a product, unbundling is charging separately for each service/product as against the bundle of services.

Another example is Facebook offering its chat service as messenger, its own standalone app. It was mainly done to focus on one thing that customers really want to do and unbundling helped in streamlining the experience.


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