136 • 100 GREAT BUSINESS IDEAS
Before you release a product, create a plan for when and how it will
become obsolete. This allows you to control change in the market,
prepare for it, and use it to your advantage.
The idea
The theory of “built-in obsolescence” can be described as “instilling
in the buyer the desire to own something a little newer, a little
better, a little sooner than is necessary.” This defi nition highlights
the underlying nature of planned obsolescence.
Obsolescence is the point where a product has become useless—
from being out of fashion, outmoded, incompatible with other
operating systems, or simply expired. Two types of obsolescence
exist: stylistic obsolescence and functional obsolescence. These two
types are not mutually exclusive—they are often interrelated and
lead to each other. By planning the point at which your product
becomes obsolete, you can begin developing a replacement and an
accompanying marketing campaign. It is also possible to trigger
obsolescence to stimulate sales and ensure you remain ahead
of competitors.
The majority of products are destined to become obsolete—in some
markets, such as fashion and technology, obsolescence is fast-paced
and woven into the fabric of the industry. Technology fi rm Apple
provides an impressive example of this; it frequently develops new
MP3 players that are upgraded in both style and technical features,
making its older products stylistically and technically obsolete.