M5-Strategy-S3 - Complementors

Complementors are firms that produce complementary goods and services for industry products.

For example

1. Gasoline makers are complementors to the automobile industry because gasoline is a complementary product essential to the operation of automobiles.
2. Complementary products increase demand for firm products. Thus, the more software that is developed for a particular computer standard, the more valuable the computer.
3. The Internet provides more information on complementary products, thus increasing rivalry (in offering complementary products) and the number of complementary products that are sold.
4. This in turn increases the number of industry products that are sold, augmenting industry profits.