Day 02 – online discussion questions

Let’s keep the discussion on-going!

• What are the examples of “switching costs” that reduce the bargaining power of buyers?
• In the presence of fierce rivalry among competitors, what should you do in order to better compete with them and achieve high profitability?
• Why is an elevator service business more profitable than a manufacturing, based on the five forces?
• Why do companies sell bundle?
• The case states on Page 8 that “The next step in our evolution will be the management of information flows between all the participants.” What does it mean by information management? Why is it important?
• The case states on Page 8 that “To achieve continuous transformation, the e*Logistics program makes sure the business process change sticks. … With the e*Logistics program, best practices from SIP are baked into the organization and institutionalized to achieve that continuous transformation.” What does it mean by “stick” and “baked”?
• Would the change from manufacturing to a service company at Otis be easy? Who would be unhappy with this change?