Technological Change Flashcards
What are the two types of innovation
Product innovation
Process innovation
What is a pure play
A business that originated and does business purely through the internet
Examples of a pure play
Uber
Asos
Airbnb
How e-commerce cut barriers to entry
New ways of delivery
Easier for smaller businesses
Easier to internationally trade
How has e-commerce worsened barriers to entry
Most heavily invest in e-commerce
Protected market positions
Brand loyalty
Amazon’s dominance
What are network economies
The extra cost of adding one more user to the network is close to zero, but the benefits are likely to be larger
How established firms may fight against e-commerce
Brand loyalty
Physical store network
Option of omnichannel
What is omnichannel
Where tradition businesses have the option of also offering e-commerce as a part of an integrated approach
