Click the Study Aids tab at the bottom of the book to access your Study Aids (usually practice quizzes and flash cards).
Study Pass is our latest digital product that lets you take notes, highlight important sections of the text using different colors, create "tags" or labels to filter your notes and highlights, and print so you can study offline. Study Pass also includes interactive study aids, such as flash cards and quizzes.
Highlighting and Taking Notes:
If you've purchased the All Access Pass or Study Pass, in the online reader, click and drag your mouse to highlight text. When you do a small button appears – simply click on it! From there, you can select a highlight color, add notes, add tags, or any combination.
If you've purchased the All Access Pass, you can print each chapter by clicking on the Downloads tab. If you have Study Pass, click on the print icon within Study View to print out your notes and highlighted sections.
To search, use the text box at the bottom of the book. Click a search result to be taken to that chapter or section of the book (note you may need to scroll down to get to the result).
View Full Student FAQs
In this chapter, we have discussed the concept of lock-in and identified various issues on the lock-in such as how companies can achieve it, the downside of it, and the lock-in index for practical use. We also have addressed the relationship between the lock-in and companies’ absorptive capacity within the framework of outsourcing. The key points are the following:
- Lock-in is pervasive. It is part of the normal day-to-day transactions in business.
- If you are a producer, then you need to take steps to acquire customers so that you can lock them in (see Figure 10.3 "Lock-In Issues"). This may include giving potential customers money, providing additional complimentary services, and developing attractive incentives for participation.
- Producers will always try to lock-in consumers. It is important that consumers try to get producers to offer incentives in order to offset present and future switching costs.
- The initial stage of bargaining is important because once the consumer has committed to a seller, then the lock-in has been cast. If you are a business and are considering outsourcing, then you will be locked-in as soon as you sign on the dotted line. In that case, you should look for second sources.
- When a company or an individual outsources, they are essentially merging with another entity that has a competitive advantage in a particular area. Identifying the processes where having a core competency is critical for the firm to survive and to engage in learn-by-doing activity in that area.
Figure 10.3 Lock-In Issues