Case_In_Point_7th_Edition_Page001_183_2

F : T rtru
te t k fi1 re ort : lat I cor t k te k raise T th e barriers O y entru ank heeA F y N t. TSince
r
th eb ave h afw Tst rnfiw itek resO rces ank decarse this is an rnre1 ratek
b ink rstru $ thinh F th e
clances O y that are Arettb nifv
b econk $ F tru te ) k frotect : lat’s w inev t Fis w r m l eaAer te m l heeA u Tr crrrent r crstew ers than
te it is 1 O Ot ank r 1et ne: Tnesv b O . ) three l l thin1 O sv . raise ) l s: itclin1 m Ots, s wahe it sO
that it : T rn)t twk
te ahe sense feave rs y Or F y N v
– Give me an example.
b ince F k n)t T hno: th e ink rstru that : eff$ F ) ihe te k t 1ive anoth er eQaw Aev t . o ’ ahes w it hark
- Tr te crstew ers feave decarse th eb ave h : lat are caffek jstich u Y eatrresv - i rtew s ers lave
th waif eir ep ak kress : ith Ao ’ th?
eb ave h th eir ak kress d O O h ith : Ao ’ ank ? th eir crstew ers
te lave access certain : ed in- Trw ation kitionaf ank ak dene-itsv te b O s: itcl T te er U anoth er
Fnternet froviker decow es a lassbev
– Point taken. What’s next?
F ) k rotect A : lat’s w inev F ) isit k U: ith w u mstew r ers ank ink - T t r: lat is iw A te rtant T th ew v
N au de increase w u Ttionaf row A e- -rtsv T Mau de cow e r A ith : crstew er fouaftb fro1raw sv Mahe
-eef th ew : antek ank sAeciafv Everu te Tne eef fihes f aA Areciatek v nk . seconk $ F : T r
everuthin1 . m O r te estadfisl b l bn1 O terw - m te ntracts T foch mstew r ers inv T o1 O afon1 :ith that,
I k ’ d ifk r in incentives Or 1ive te cow wissions err safes te sta- - repsi1n a cfient.
– Third?
B rin1 in ne: mstew r ersv . ) increase l w u warhetin1 e- -rts, T Aace b aks, te 1 O conventions, b O d
y Or state contractsv . ) te steaf tru l safes sta- - ank mstew r ers a: au row - w u m etitionv T w A .nk
-inaffu $ F : T1ro:
r tthror1 k l acH risitionv % T r entionek w that th ere : ere a nr w er d o- sw affer
A auers t that hak Tne or t: T i1 daccorntsv . ) ee l i- sth eb : T r ihe t te seff k t th eir drsinessesv
– Don’t you think that’s risky? To lay out capital to buy up small firms when IBM is coming to town?
What’s to guarantee that the small firm’s clients won’t jump to IBM?
fetentiaf te
:eff -aff iff
te
te te
T here are no 1 raranteesv 2 O ever$ : dein1 . B is M a k T repek1ek
d t s: Ork v n oth e ene lank $ F y
is di1 , as l an increkidfe aw T nt r ef resO rces ank th e k T 1reat thin1 sv n oth e eth er
lank it $ is decarse it is sO di1 that thin1 s wi1 lt v eru thror1 l th e crachsv . w ron1 . : in
thinhin1 that th e rainin1 t :e o- -er is siw ifar : lat I B M ef frs? e . thinh th e thin1 s that :
ki- -erentiate rs are orr AeoA e t ank T r rcrstew er servicev ce)re 1 Oin1 fi1 lt ank k
everuthin1 :e can hefk Tn err crstew er dase : life : e ArosAect fer ne: d sinessv r
B ein1 th e bi1 1est isn)t af: aus an ak Uanta1ev
– What if IBM comes in and offers the same services you do, but offers a steep discount for clients
to sign up? Do you lower your prices?