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Understanding Planned Obsolescence in Business

May 7, 2025

Planned Obsolescence

Definition

  • Planned Obsolescence is a business strategy where products are designed to have a limited lifespan.
  • The goal is to encourage consumers to purchase new versions as products become outdated or unusable after a specific period.
  • Tactics involved:
    • Making products irreparable
    • Using materials that wear out quickly
    • Releasing new models with minor changes before the previous ones are fully functional

Origins

  • Not created by one individual but emerged within the industrial world.
  • Bernard London is sometimes credited with popularizing the idea through his 1932 pamphlet "Ending the Depression Through Planned Obsolescence."
  • The term and practice were developed by industrial designers and marketers in the 1920s and 1930s.

Advantages for Companies

  • Companies utilize planned obsolescence to:
    • Design products with limited lifespans or quickly outdated features.
    • Encourage consumers to purchase replacements more frequently.
  • Benefits include:
    • Driving repeat sales
    • Increasing revenue
    • Maintaining steady demand for newer models or versions
    • Creating a cycle of continuous consumer spending while ensuring brand relevance and market competitiveness.

Environmental Impact

  • Negative Effects:
    • Increases waste, especially electronic and plastic waste.
    • Results in overflowing landfills and pollution.
    • Higher demand for raw materials contributes to resource depletion and environmental degradation.
  • Manufacturing and disposal processes often release harmful emissions, worsening climate change.

Participants in Planned Obsolescence

  • Mainly practiced by large-scale companies, including:
    • Tech companies (e.g., Apple)
    • Companies producing lightbulbs
  • These companies engage in planned obsolescence to maximize profits.