Does IT Matter Assignment Coursework Example | Topics and Well Written Essays - 500 words

Does IT Matter Assignment - Coursework Example In terms of buyers, the buyers can be said to be fragmented since due to the many types of people possibly needing such services. There is no certain defined group that can control the outcome of the pricing. In fact, the buyers depend on the system which cannot be found on other car rental companies so switching costs are not yet a concern. This also minimized the threat of substitutes since the product is very unique. As for the suppliers, the channel of distribution is online. This make selling much easier, since there is no middle man or salesman who can interrupt in the process. As for the threat of new entrants, the costs for a competitor to switch to a similar system are quite risky since Zipcar has already a proven track-record. The reengineering of services would entail not only capitalization but training as well so, unless a new business has strong capitalization, Zipcar would be enjoying its current position. 2. Information technology had always been utilized by companies to gain competitive advantage. In Zipcar’s case, it has used IT to create a unique service that most people are used to nowadays (making reservations online). Likewise,it has created synergy by adapting a system that makes things more efficient not only for the customer but for the business as well.