kony study

What is a firm to do when it is faced with all these competitive forces? And how can the firm use information systems to counteract some of these forces? How do you prevent substitutes and inhibit new market entrants? There are four generic strategies, each of which often is enabled by using information technology and systems: low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy. Supermarkets and large retail stores such as Walmart use sales data captured at the checkout counter to determine which items have sold and need to be reordered. Walmart’s continuous replenishment system transmits orders to restock directly to its suppliers. The system enables Walmart to keep costs low while fine-tuning its merchandise to meet customer demands. 1. How does Porter’s competitive forces model help companies develop competitive strategies using information systems? In Porter’s competitive forces model, the strategic position of the firm, and its strategies, are determined by competition with its traditional direct competitors, but they are also greatly affected by new market entrants, substitute products and services, suppliers, and customers. Information systems help companies compete by maintaining low costs, differentiating products or services, focusing on market niche, strengthening ties with customers and suppliers, and increasing barriers to market entry with high levels of operational excellence.

1. Explain in detail with a neat diagram Michael Porter’s classic model of competition (five force model) 1. How does Porter’s competitive forces model help companies develop competitive strategies using information systems? First, let’s define Porter’s competitive forces model and explain how it works. • Describe what the competitive forces model explains about competitive advantage. • List and describe four competitive strategies enabled by information systems that firms can pursue. • Describe how information systems can support each of these competitive strategies and give examples. • Explain why aligning IT with business objectives is essential for the strategic use of systems. PORTER’S COMPETITIVE FORCES MODEL Arguably, the most widely used model for understanding competitive advantage is Michael Porter’s competitive forces model (see Figure 3.8). This model provides a general view of the firm, its competitors, and the firm’s environment. Earlier in this chapter, we described the importance of a firm’s environment and the dependence of firms on environments. Porter’s model is all about the firm’s general business environment. In this model, five competitive forces shape the fate of the firm. Traditional Competitors All firms share market space with other competitors who are continuously devising new, more efficient ways to produce by introducing new products and services and attempting to attract customers by developing their brands and imposing switching costs on their customers. New Market Entrants In a free economy with mobile labor and financial resources, new companies are always entering the marketplace. In some industries, there are very low barriers to entry, whereas in other industries, entry is very difficult. New companies have several possible advantages: They are not locked into old plants and equipment, they often hire younger workers who are less expensive and perhaps more innovative, they are not encumbered by old worn-out brand names, and they are “more hungry” (more highly motivated) than traditional occupants of an industry. These advantages are also their weakness: They depend on outside financing for new plants and equipment, which can be expensive; they have a less-experienced workforce; and they have little brand recognition. Substitute Products and Services In just about every industry, there are substitutes that your customers might use if your prices become too high. New technologies create new substitutes all the time. The more substitute products and services in your industry, the less you can control pricing and the lower your profit margins. Customers The power of customers grows if they can easily switch to a competitor’s products and services, or if they can force a business and its competitors to compete on price alone in a transparent marketplace where there is little product differentiation, and all prices are known instantly (such as on the Internet). For instance, in the used college textbook market on the Internet, students (customers) can find multiple suppliers of just about any current college textbook. In this case, online customers have extraordinary power over used-book firms. Suppliers The market power of suppliers can have a significant impact on firm profits, especially when the firm cannot raise prices as fast as can suppliers. The more different suppliers a firm has, the greater control it can exercise over suppliers in terms of price, quality, and delivery schedules. For instance, manufacturers of laptop PCs almost always have multiple competing suppliers of key components, such as keyboards, hard drives, and display screens.

ақш 💔

Инстаграмдағы жаңа рил ұнағанына қуаныштымыын 🤗 сен де осы видеоны қайталай аласың, ол үшін туториал және мына артындағы жасыл түстін алып тастауға болатын анимация көмектеседі 🙌🏻 оны CapCut-та жасай аласың 📱 🤍 туториал: https://www.instagram.com/reel/CuPXCLyg2fL/?igshid=MzRlODBiNWFlZA== нағыз видео: https://www.instagram.com/reel/CuPLLosvOfT/?igshid=MzRlODBiNWFlZA==

Ютуб каналымда шыққан жаңа видеодағы вайбты сезін 🎧 және видеоны қара 🤍 https://youtu.be/j3x_6DYi8-s