List and describe some of the options that Facebook managers have in balancing p

Question

List and describe some of the options that Facebook managers have in balancing privacy and profitability. How can Facebook better safeguard user privacy? What would be the impact on its profitability and business model? Do you anticipate that Facebook will be successful in developing a business model that monetizes their site traffic? Why or why not? could a company run its entire business using Salesforce.com, Force.com. and App Exchange? Explain your answer. You are consulting with the owner of Better Bodies, a national chain of gyms. What strategies might Better Bodies use in applying information services to achieve a competitive advantage?

Explanation / Answer

Strategic Advantage can be achieved by using the information system at the industry level. They exchange the information or business transactions electronically like with the help of ERP system. Since it is electronically connected that’s why all the participants promise to deliver same standards. And due to which the efficiency can be increased, product substitution becomes difficult and also the entry costs will increase.

Value chain has become highly synchronized and known as value web, just because of internet technology. A value web is a collection of independent firms that use information technology to coordinate their value chain partners so that they can produce the product or services for a market collectively. This type of value chain is customer driven and operates in a less linear fashion as compare to traditional value chain.

Network economics can be derived if the business models are based on network dynamics. In network economics, the marginal costs of adding another participant or creating another product are negligible, whereas the marginal gain is much higher. For example, the more people offering products on eBay, the more valuable the eBay site is to everyone, because more products are listed and more competition among the suppliers (Gym Owners) reduces the prices of the services offered by them.

Another network strategy used is the virtual company, or virtual organization, which uses the networks to link people, assets, and ideas, enabling it to ally with other companies to create and distribute services without keeping themselves in the traditional boundaries.

So in the same manner the gym owner of better bodies applying the strategies making best use of Internet and information system just to have more and more customers.

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