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Shrink Wrap

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The term Shrink Wrap describes software where the purchaser normally does not deal directly with the computer software company, but instead purchases the software through mass market distribution channels - retail and wholesale stores or direct mail. This nickname came into use because such products are usually accompanied by a document known as a shrinkwrap license. The license is normally connected to the software in such a way that the buyer should notice and read the license before using the software. Acceptance of the license terms and conditions is acknowledged by the purchaser when the purchaser opens the software shrinkwrap or other packaging, or by using the software.
Here are three software marketing approaches, compared and contrasted.
Shrink Wrap Vertical Market Custom or Turn Key
May be used differently depending on the customer. This implies flexiblity to meet individual needs. All users in similar industries, or in industries with similarly configured Value Chains. Most use the software in similar ways. Static set of users. All use the software the same way.
Functionality driven by market. Functionality driven by needs of industries or segments thereof. Functionality largely driven by process or other sustainable competitive advantage needs.
Functionality decisions made by software company. Functionality decisions made by Users from an industry. Functionality decisions made by User's company.
Development cycle typically long, and is release based. Development cycle typically shorter, driven by customer demand within industries. Incremental Development cycle involving one customer.

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( Topic last updated: 2001.10.24 06:21:05 PM )