POLI1042 Lecture Notes - Lecture 9: Freshdirect, Scalability
20 Jun 2016
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A. 1. when a firm can spread costs across increasing units of production. A. 2. venture capital is interested in scalable businesses. Switching costs: cost of hardware and software, learning curve, installation, it change, decreased productivity and switch of data, from pc to mac. A. the idea that something gets mire valuable as more people buy it: congestion effect. B. 1. so much saturation that the value decreases at a certain point of increas- ing. A. the path that your products or services go through to reach your customers: grocery store, the internet (amazon) B. 1. do not have to compete for shelf space at a retail distribution location. B. typically you need a family of patents: very expensive to defend, no guarantee they are defensible, not hard to change software in order to get around patents. A. joining forces with providers of complementary services or products: 1988 apple sues microsoft, 1997 apple on the verge of bankruptcy.
