Assessing the impact of the Internet on competitive forces in different industries

Purpose

To assess how some of the changes to the competitive forces caused by electronic communications impact particular industries.

Activity

Referring to Table 2.2, assess the impact of the Internet on a sector you select from the options below. State which you feel are the most significant impacts.

1 Banking.

2 Grocery retail.

3 Book retail.

4 B2B engineering component manufacturer.

5 B2B software services company selling customer relationship management software.

6 Not-for-profit organisation such as hospital, local government or charity.

Commoditisation

The process whereby product selection becomes more dependent on price than on differentiating features, benefits and value-added services.

Soft lock-in

Electronic linkages between supplier and customer increase switching costs.

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