ACC322 Managerial Accounting

Industry which shreds the Marginal cost and changes the scope of Business models.Society is undergoing tremendous change right now — those of us who enjoy services like Uber and Kickstarter are experiencing it first hand. The sharing and collaboration practices of the internet are extending to transportation:

 

1. (Uber),

 

2. Hotels (Airbnb),

 

3. Financing (Kickstarter, LendingClub),

 

4. Music services (Spotify) and

 

5. Even software development (Linux, Drupal).

 

Today, the focus is changing Within service industries like hospitality and transportation new entrants are succeeding not by optimizing production, but by eliminating production cost altogether. Consider Uber vs. traditional taxi companies.The sharing and collaboration practices of the internet are extending to transportation.For a traditional taxi company to add another taxi to its fleet, a car and license need to be acquired at significant cost. Instead of shouldering that setup cost,

 

Uber can add another taxi to its inventory at almost no cost by enabling people to share their existing cars, all coordinated via the internet. In the above example the transportation industry is given. Give a brief comment about 150 words on any other type of industry which has a similar sourcing policy and the business strategy of the companies has changed.