Exam 7: The Competitive Environment

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In contrast to the 'old economy' the 'digital economy' is driven by

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Google is subject to 'network externalities'

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Microsoft achieved domination with its PC operating system through ______________ because switching costs for users were very high.

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One of the implications of the digital economy is that there is a higher degree of interconnectivity between players in a digital supply network. The pressure for individual players to conform to technology standards has made them more replaceable. DiMaggio and Powel (1983) define this problem as

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The internet has seen a shift from content generation predominantly being in the hands of large organizations to a new paradigm called__________'.

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In the 'digital economy' issues such as economies of scale and economies of scope are no longer relevant.

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What is a pure network good?

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Over the last few decades the telecommunications industry has seen a shift from

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In the 1980s IBM PCs became the industry standard whereas Apple PCs remained a niche product. What is another name for the instance when IBM started to gain market share rapidly?

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