1) What are the business benefits to Amazon and eBay of opening up some of their databases to developers and entrepreneurs? Do you agree with this strategy? Why or why not?
Amazon and eBay became more popular and productive by opening up some of their database to developers and entrepreneurs. Their sales volume increased tremendously resulting better profit margins. After opening up to some developers and entrepreneurs it became more reachable, creating employment opportunities to several people.
This strategy has given positive output to the organization with mass production and easy functioning of the activities. It has made it more efficient and effective. Its customers have benefited a lot from its decision to open up for a certain group, resulting customer satisfaction. It has been easier for the people to search and make choices from the numerous seller options. So I think for the organizations as such, this kind of strategy does works but it may not be applicable to all kinds of organizations where security issues are very important, because it may not be secure to do this.
2) What business factors are causing Google to move slowly in opening up its database? Do you agree with its go-slow strategy? Why or why not?
Opening of the database has resulted the better profitability and popularity for many big organizations. It has made the whole process smooth and easier, so opening up its database has been the trend once organization becomes strong enough to handle it. Google is growing rapidly and opening up its database makes it easier to manage and consumes less time of its user to search the items. But however Google is going slow and making very strict rules for such kind of openings. They are playing slow and safe with special permission issues for voluminous search results.
Rather than jumping to what others are doing it’s always better to accommodate by making certain changes. Just because this strategy went well with Amazon and eBay it is not sure that it will also work well with Google, so I think they are being more reasonable and responsible towards what they are doing by not speeding the process and viewing every change so closely and effectively so that errors are less likely to occur.
3) Should other companies follow Amazon’s and eBay’s lead and open up some of their databases to developers and others. Defend your position with examples of the risks and benefits to an actual company.
What turns good to one organization may not turn good to every organization. So just because some organizations are benefiting from database opening to some developers and marketers it may not be wise for every organization to think that it will work good to them as well. It may be good but before jumping on to the decision to do the same organizations should learn about viability of this thing to the way they perform and the activities they conduct. They should make proper feasibility study about their own organization and the benefit from this implication.
By opening up organizations can have several risks and benefits. Some of them are listed below:
· Increased productivity of user and organization itself.
· Time saving
· Decrease in cost
· Privacy and security issues.
· Chances of fraud
· Very tedious and difficult process to go through