OIM 210 Chapter Notes - Chapter 10: Walgreens, Wepay, Big Data
5 Apr 2016
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Collaboraive consumpion is a term used to describe the evolving sharing economy. Firms characterized as part of the sharing economy/collaboraive consumpion : 10. 2 boom times and looming challenges in the sharing economy. Recession raised interest in low-cost alternaives such as crowd sharing. May seem creepy to an older generaion, but raings ease fears. All shared economy eforts are two-sided markets with network efects. Early entrants win with scale, brand, and resources. Lyt ofered an hourly wage, but customers were not as frequent. Lyt removed the hourly wage, so drivers moved to uber, more popular and reputable. Sharing economies save companies the costs of capital investment, uiliies, and maitenence. Must watch inventory closely (renttherunway and chegg), in order to coninuously provide customers with high quality and imely merchandise. Highly fragmented market = lots of suppliers, search costs are high. Raings online allow customers to make a low risk choice and get a high quality provider.
