POLARIZATION IN THE HOME APPLIANCE MARKET

Polarization in the Home Appliance Market



Polarization in the Home Appliance Market

The middle-market trap occurs when a market gets polarized with low cost Asian brands taking the low end of the market plus premium brands growing at the high end of the market at the expense of the middle-of-the-road brands. This is a common incidence in markets, a threat to which most companies react by cutting costs. History is littered with companies - some well known icons - that have cut themselves into oblivion.

One of the major changes implemented in marketing was the way they segmented ...