MIS 111 Lecture Notes - Lecture 8: Switching Barriers

• School: University of Arizona
• Department: Management Info Systems Main
• Course: MIS 111
• Professor: ALL

Document Summary

3. bargaining power of suppliers high when buyers have few choices and low when buyers have many choices. Internet impact is mixed with the intent buyers can find alternative suppliers and compare prices more easily, reducing power of suppliers. Whereas when companies use the internet to integrate their supply chains, suppliers can lock in customers. 4. the bargaining power of buyers is high when buyers have many choices and lower when buyers have fewer choices. Internet access increases buyer"s access to information which increases buyer power. Internet reduces switching costs, which are the costs, in money and time, to buy elsewhere. 5. threat of substitute products or services is high when there are many substitutes for an organizations products or services and low when there are fewer substitutes. Information based industries are in the greatest danger of this threat (music, books, software etc. ) because the internet can convey digital information quickly and efficiently.