Discussion: Insurance Company

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Discussion: Insurance Company

Discussion: Insurance Company

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Use the five competitive forces model as described in this chapter to describe how information technology might be used to provide a winning position for each of these businesses: a. A global advertising agency b. A local restaurant c. A mobile applications provider d. An insurance company e. A Web‐based audio book service

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52 Strategic Use of Information Resources

3. Using the value chain model, describe how information technology might be used to provide a winning position for each of these businesses: a. A global advertising agency b. A local restaurant c. A mobile applications provider d. An insurance company e. A Web‐based audio book service

4. Use the resource‐based view as described in this chapter to describe how information technology might be used to provide and sustain a winning position for each of these businesses: a. A global advertising agency b. A local restaurant c. A mobile applications provider d. An insurance company e. A Web‐based audio book service

5 Groupon pays the retailer when the coupon is redeemed, making money both on the fl oat between the time revenue is collected and the time the retailer is paid and on the certifi cates that are never redeemed at all, which the industry calls break- age. Retailers make money in the long run by introducing customers to their products, selling them additional products and services when they come in to redeem their coupons, and turning them into repeat customers. And retailers benefi t from the buzz created when their business is on Groupon .

In August 2010, Groupon launched its fi rst national deal, a coupon worth $50 of Gap apparel and accessories for $25. It sold over 440,000 coupons, netting Groupon and the Gap close to $11 million. But not all vendors are the size of the Gap , and smaller vendors have been overwhelmed with too many coupons. One local business owner said the company lost $8,000 on its Groupon promotion when too many coupons were issued. In fact, a study of 150 retailers showed that only 66% found their deals profi table.

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