Question

1) Markets where strong network effects are present often exhibit a winner-take-all or winner-take-most dynamic. What network effects-related advantages can a dominant incumbent enjoy that help it repel rivals, and why is it so difficult for a newcomer to displace the dominant player in these markets?

2) How has the rise of microblogging in general, and Twitter in particular, impacted the way people communicate and do business?

3) How does Uber ensure high driver quality?

4) What is distributed computing? Briefly explain the various concepts used in conjunction with distributed computing.

5) List some of the advantages that app developers enjoy when compared with browser-based or packaged software development.

Answer 1

1. The network markets are such which experience fierce competition in the early stages where the dominant participant who understands the business first can be working towards monoplistic power. By understanding the market better, the dominant party enjoys monopolistic powers where he or she develops startegies to overcome challenges in the market and takes hold of the entire population wanting to buy th product or service.

In this market, the brand repuation increases which inturn attracts more consumers without any effort put by the seller. This gives them a strong advantage which helps them make regular income. Since the dominant party makes a strong repuation amongst the consumer's mindset, they are reluctant to move to other party which is new in the market.

2. Social media is a communication method that has become popular in today's scenario. Therefore, most of the communications that happen are done on this platform. The major reason for this is that it is accepted by a large audience, and has become a marketing space for businesses where they can communicate with their consumers. Especially, Twitter is platform where businesses can share their updates and trends in a way where it can be read by a large number of audiences. This has impacted the way businesses are run in a major way. It has fast paced the way companies work and the innovations that are made.

3. Uber is an organsiation which gives a lot of importance to customer satisfaction. They have a very strong IT Infrastructure and also a very strong Operational Strategy. The Operational Strategy helps in choosing the right candidates in the form of drivers where proper background check is done and the rightful candidates are given with the driver's licenses. In terms of IT Infrastructure, there is proper monitoring that is being done when a driver is on a ride witht he customer. It ensures that the driver does not take any undue advantage from the passenger. Finally, a proper feedback session about the driver from the consumer helps in judging the quality of the driver and based on the driver's overall rating, the rides would be assigned to them and an additional payout would be offered for maintaining higher ratings.

4. A distributed computing is something where different computers located at different locations can communicate amongst each other. This helps in reducing the overall TAT and also reduces the error rates. The various concepts used in conjunction with distributed computing would be client/server communications model. A client/server communication model is a model where the client which is the end user devices communicates with the server which is the end point where the complete date is stored.

The concept of this model is to reduce turn around time and deliver quick resolution to issues.