BROWSE

Unbundling

Definition

Unbundling is a neologism to describe how the ubiquity of mobile devices, Internet connectivity, consumer web technologies, social media and information access in the 21st century is affecting older institutions by "break[ing] up the packages they once offered, providing particular parts of them at a scale and cost unmatchable by the old order." Unbundling has been called "the great disruptor".

What is 'Unbundling'

Unbundling is a process by which a large company with several different lines of business retains one or more core businesses and sells off the remaining assets, product/service lines, divisions or subsidiaries. Unbundling is done for a variety of reasons, but the goal is always to create a better performing company or companies (except in the case of government-forced unbundling).

Explaining 'Unbundling'

A company’s board of directors, its managers or regulators may call for unbundling. The board of directors may call for it if the company’s stock is performing poorly and/or the company needs to raise capital or wants to distribute cash to shareholders. Management might call for unbundling if it thinks the result would be a new company that would perform better on its own. Regulators may force unbundling when they perceive a company to have become anticompetitive. When the board or managers calls for unbundling, it often improves the company’s stock price; the opposite tends to happen when regulators call for it.


Further Reading


Unbundling the corporation
go.gale.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Unbundling institutionsUnbundling institutions
www.journals.uchicago.edu [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Unbundling the institution‐based view of international business strategyUnbundling the institution‐based view of international business strategy
www.oxfordhandbooks.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Unbundling, public infrastructure financing and access charge regulation in the German rail sectorUnbundling, public infrastructure financing and access charge regulation in the German rail sector
www.sciencedirect.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Higher education, unbundling, and the end of the university as we know itHigher education, unbundling, and the end of the university as we know it
www.tandfonline.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

The unbundling of residential mortgage financeThe unbundling of residential mortgage finance
www.jstor.org [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Infrastructure financing with unbundled mechanismsInfrastructure financing with unbundled mechanisms
search.proquest.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

Unbundling management accounting innovationsUnbundling management accounting innovations
www.sciencedirect.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …

The evolution and future of the BRICS: Unbundling politics from economicsThe evolution and future of the BRICS: Unbundling politics from economics
www.sciencedirect.com [PDF]
… will have to go through a similar process of unbundling, shedding unneeded … As interaction costs fall, companies will come under pressure to unbundle their core … Product Customer Infrastructure Innovation Relationship Management Management Economics Early market entry …


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