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For this reason, many companies that apply the razor and blade business model have been the target of activists due to the amount of waste that their consumable products produce. This was the case with coffee makers with capsules, for example. However, for now, this has not yet significantly affected business. The truth is that the consuming public is still more concerned with convenience than with the environment. Brand lock-in Some customers may have a bad image of the brand that applies this business model due to the lock-in that it causes, with the product itself or with the brand.


People can be frustrated by feeling that of choice and end up denying the buy south korea whatsapp number database brand for it. In addition, if consumable products are too expensive, the price may end up discouraging customer loyalty. Disruption Razor and Blade Business Models are ripe for disruption and therefore are best suited for incumbents in well-defended categories (and even then are ripe targets). The chart above gives a good idea of the different customer development stages of a company that decides to adopt this business model.


The bottom line razor and blade business model Gillette, HP printers and cartridges, Sony Playstation, Microsoft Xbox, and Nespresso are some well-known names among razor and blade businesses. Even Amazon has appropriated this strategy for its Kindle: the device is sold at a pretty slow price, to make money with the related e-books. As you can see, the razor and blade business model is an old business, about a century old, but which remains consistent and profitable for several companies that choose to apply this strategy.