Definition of Unbundling:
The process of breaking apart something into smaller parts. One example would be taking a bundled computer system and unbundling it into its individual pieces such as the monitor, keyboard, and mouse, and then selling each of these items individually. Another example of unbundling is a service for which one final fee is charged to the consumer, such as a utility bill, but the company displays on the bill the different charges for each individual part of the total service, such as the resource itself, its distribution, and the state taxes.
Unbundling is a process by which a company with several different lines of business retains core businesses while selling off assets, product 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. Unbundling may also refer to offering products or services separately that had previously been packaged together.
Market or charge for (items or services) separately rather than as part of a package.
The decision to "unbundle" may be called for by the board of directors or by company managers. The board of directors may call for it if the company’s stock is performing poorly, the company needs to raise capital and/or the company wants to distribute cash to shareholders. .
Split (a company or conglomerate) into its constituent businesses, especially prior to selling them off.
How to use Unbundling in a sentence?
- Banks may be forced to unbundle costs and charge extra for each cheque processed.
- If you are unbundling the pine straw, by removing the cord, it will separate and no longer be condensed and tight.
- We had to do some unbundling and it would take a really long time and a lot of manpower as well.
- If a company’s share price is performing poorly, the board of directors may call for unbundling to raise capital or distribute cash to its shareholders if they believe the process will help improve its performance. .
- Unbundling may also refer to offering products or services separately that had previously been packaged together.
- Unbundling a gasket kit is not allowed because if we take something out of the kit then sale the kit, we will end up making our costumers unhappy, because whoever buys the kit wont have everything they need to fix their machine.
- To improve its operations, a company may “unbundle” by selling off assets, product lines, subsidiaries, or divisions. .
- The companys decision to unbundle its retail holdings comes at a bad time.
Meaning of Unbundling & Unbundling Definition