3-1 How do Porter’s competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

• Define Porter’s competitive forces model and explain how it works.

• 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 strategic use of systems.

• Define and describe the value chain model.
• Explain how the value chain model can be used to identify opportunities for information systems.
• Define the value web and show how it is related to the value chain.
• Describe how the Internet has changed competitive forces and competitive advantage.
• Explain how information systems promote synergies and core competencies that enhance competitive advantage.
• Explain how businesses benefit by using network economics.
• Define and describe a virtual company and the benefits of pursuing a virtual company strategy.
• Define and describe a business ecosystem and how it can provide competitive advantage.
• Explain how disruptive technologies create strategic opportunities.