Proprietary products litter the technological scene that we live in. These are the products that can only work in a specific device. Many individuals use the products and never think why this disc only works with this media player, or why this film only works in this specific video camera? This article will analyze and compare the advantages many companies gain with the use of proprietary products.
The definition of a proprietary product is defined as an idea or object that is owned entirely by the owner. Proprietary products, ideas and objects are the property of the owner and cannot be recreated without the consent of the owner. Patents are usually involved covering the idea, object and product.
As mentioned earlier proprietary products bring various degrees of advantages for manufacturers. One such benefit is the role of quality control as it applies to the creation of products. When manufacturers are able to control the various steps in the creation of their product, they are able to ensure the best quality possible. This is very important if a company prides itself on excellent quality products. Sony is the perfect example of this. They have created entire products that rely on their own proprietary products. This is extremely beneficial to Sony as they are able to ensure that the products created are the best quality as they are the only ones making it. An example is the creation of their line of memory cards. Aside from creating the product themselves, they have granted exclusive licenses to manufacturers who they believe can uphold the quality that Sony has become to be known by.
One important advantage for companies who create proprietary products for exclusive use in their accompanying device is the large revenue base it creates. Fuji as the leader in digital cameras is the perfect example of a company who benefits tremendously from the revenue generated by proprietary products. They have a hand in almost every section of the popular digital camera market. This is a very big advantage to keep profits within the company by having their devices work with only their products. Benefits of proprietary products are also seen in the revenue aspect of business. If a company owns the exclusive right to something, then they have the advantage of receiving all the sales for that specific product. Camera manufacturers such as Fuji have struck gold with the creation of their . With thousands of digital cameras sold daily and added way to earn more revenue is allowing those same cameras to only work with the xD picture card. This guarantees a solid stream of income for those same camera manufacturers.
Developers of proprietary products face a wide range of benefits for their exclusive products. The developers of these products get the benefit of quality control and revenue from these proprietary products. With control over quality, manufactures that they are getting the best product possible. With the control and development of products that use proprietary goods it opens up an unrestricted revenue base. One that can change the financial fortunes of companies.
