MIS 311 Chapter Notes - Chapter 10: Walgreens, Airbnb, Sharing Economy
6 Dec 2016
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Disclaimer: this outline is rather short and brief. Sharing economy, collaboration economy, peer to peer commerce, etc. used for things such as selling goods, services, transportation, office space, money/finance. Allows firms to pool resources to create new opportunities. Boom times and looming challenges in sharing economy. Perfect environment created market sharing: worldwide economic recession, stagnant wages, customers want low-cost alternatives (which leads to renting instead of buying). Highly fragmented markets are perfect grounds for creating electronic marketplaces: easier to search for what you want, makes value chains more efficient. Social proof: positive influence created when someone finds out that others are doing something: firms spend less on advertisement if their customers become ambassadors/advocators. Risks in safety and regulation: does not always offer protection or insurance, local firms are threatened, unsure if workers of sharing economies are independent contractors or employees. Depending on your classification, you pay different rates of tax.
