Unbundling

Unbundling: Unbundling can be defined as the process of taking a product or package and breaking or dividing it into different parts. In the scenario of a corporate merger or takeover, it may refer to the selling off the subsidiaries of a parent organization with diversified business interests, while retaining the core operations, in order to help finance the merger.

While unbundling may be taken as simply as for example selling different components of say a computer, such as motherboard, hard disk etc separately, the term is nowadays generally used to describe the impact of the current information technology and social media revolution and how they have affected traditional organizations such as newspapers, broadcasting, education by breaking up their products, and offering them part and parcel to the consumers at a scale and cost that cannot be matched by the older institutions.

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Edited and Updated 08th March 2014

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