ITM 707 Lecture Notes - Lecture 10: Icloud, Linkedin, Switching Barriers

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 707
• Professor: Sameh Al Natour

Document Summary

Information resources also can be used to build barriers that discourage competitors from entering an industry. For example, google"s search algorithm is a source of competitive advantage for the search company, and it"s a barrier of entry for new entrants that would have to create something better to compete against google. New entrants have failed to erode google"s market share, which holds fast at 65% in the united states and at over 90% in europe. 6. Walmart, another example, effectively blocks competition with its inventory control system, which helps it drive down expenses and ultimately offer lower costs to customers. Any company entering walmart"s marketplace would have to spend millions of dollars to build the inventory control system and is required to provide its operations with the same capabilities. Therefore, the system at walmart may be a barrier to entry for new companies.