Answer to Question #263154 in English for Goody

Question

 how a business can use information technology to increase switching costs and lock-in its customers and suppliers

Answer 1

A business can use information technology to increase switching costs and lock in its customers and suppliers by:

• Using the data trap; which enables customers to create or purchase content and apps that are consistently hosted on a platform. These platforms can be websites, sofware or mobile applications. By leaving a platform for another, a customer is forced to let go of data or activity that cannot be migrated to another platform.
• A business can also IT to create a learning curve trap on a product. A learning curve trap is centered on offering a great value proposition accessible to only those willing to train. This makes customers hooked to the business' products and discourages them from starting over and learning to use another product.