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Q. Raising barriers to entry using information system?
By investment in information technology a firm could as well erect barriers to entry that would discourage or delay other companies from entering a market. Typically it takes place by increasing the amount of investment of the complexity of the technology required to compete in an industry or market segment.
Exp: - Merrill Lynch together with an alliance with 'Banconc' became first securities brokers to offer a checking account, credit line, Visa credit card and automatic investment in money market fund all in one account. Therefore large investments in computer base on information system can make the stakes to high for some present or prospective players in an industry.
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