ITM 102 Lecture Notes - Lecture 8: Dot-Com Bubble, Digital Goods, Mobile Commerce

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 102
• Professor: Bharat Shah

Document Summary

Chapter 10: e-commerce - digital markets: digital goods. E-commerce - use of the internet & web to transact business. Began in 1995 & grew exponentially; still stable even in a recession. Companies that survived the dot-com bubble now thrive. Move from desktop to smartphone (mobile-commerce ?) 1 set of technology standards: internet standards. Technology permits modification of messages & goods. Promotes user content generation & social networking. Internet & digital markets have changed the way companies conduct business. Menu costs, search & transaction costs reduced. Disintermediation; connecting manufacturer straight to the customer which saves money because no markup is needed to compensate for the distributors/retailers. Goods that can be delivered over a digital network. Cost of producing 1st unit is almost entire cost of product. Costs of delivery over the internet is very low. Marketing costs remain the same; pricing highly variable. Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc. )