4. Complementary products and services. Complements are products or services used together with an industry’s product. Complements arise when the customer benefit of two products combined is greater than the sum of each product’s value in isolation. Computer hardware and software, for instance, are valuable together and worthless when separated.
In recent years, strategy researchers have highlighted the role of complements, especially in high-technology industries where they are most obvious. By no means, however, do complements appear only there. The value of a car, for example, is greater when the driver also has access to gasoline stations, roadside assistance, and auto insurance.