MIS 303 Study Guide - Midterm Guide: Switching Barriers, Airbnb, Netflix

• School: George Mason University
• Department: Management of Information Systems
• Course: MIS 303
• Professor: Run Jung

Document Summary

Economic: reduce search costs, create long-tail phenomenon. Increase efficiency in supply chain management: group decision-making/ knowledge sharing, enhance communications/collaboration. Means, without it or if it fails, business is seriously jeopardized. The computing power of computer chips tends to approximately double every 2 years. How it have transformed the existing industry examples. Buyer power: to decrease: unique or highly differentiated products/services; switching costs; loyalty programs. Supplier power: to increase: high switching costs (are there other suppliers who can offer similar products/services to you?) Threat of new entrants: decrease: high entry barriers. Threat of new substitutes: high when there are many alternatives to product/service (are the substitutes necessarily the same products/services?) Rivalry among existing competitors: decrease: product differentiation (unique differences in product/service that will increase demand) To be competitive, a firm must be able to perform its value-added activities at either a lower cost than competitors or in a way that leads to differentiation; superior profitability.