Paper Info
Title
Using IT to Open Previously Unprofitable Markets
Abstract
It is now widely accepted that Information Technology can make firms more efficient and has created a host of new markets. Yet IT could also open up previously unprofitable markets. In this paper, we look at this phenomenon. We begin with a traditional economic production model and identify when firms will not enter a market. Specifically, we focus on the problem of high fixed costs and limited market size. Then we introduce technology into the model to identify cases where IT could make it profitable to enter the market. Although IT doesn't always translate into potential profitability, we find that IT may help firms enter previously unprofitable markets when compared to non-IT enabled firms.
Year
DOI
Venue
2006
10.1109/HICSS.2006.524
HICSS
Keywords
Field
DocType
new market,information technology,potential profitability,limited market size,unprofitable market,traditional economic production model,high fixed cost,unprofitable markets,internet,profitability,investments,fixed cost,production,supply chains
Economics,Enterprise resource planning,Information technology,Microeconomics,Fixed cost,Knowledge management,Market size,Profitability index,Supply chain,Industrial organization
Conference
ISBN
Citations 
PageRank 
0-7695-2507-5
0
0.34
References 
Authors
3
2
Name
Order
Citations
PageRank
Kurt DeMaagd1154.30
Scott Moore2806.16