Question: could anyone help me with this? its question 1 and 2 1. Apply the five forces model to a business of your choice. Review Pages
could anyone help me with this? its question 1 and 2
1. Apply the five forces model to a business of your choice. Review Pages 91-93 2. Find examples of five businesses that use any of the Information Systems Strategies for Dealing with Competitive Forces, Review Pages 94-98 Part One Dawa PORTERS COMPETITIVE PORCES MODEL The other Orrond w FOURR. op Inform with What Gathe de They acked into old play and out etworker weave and thaos mantentional tot and cumbered by our brand names, and they The web They depend onde planet which be expensive they have worden belave borde brand recognition Substitute Products and Services This there are substitutes that become the Nechnologies create new Brunnen for alle in care vegetable oil to and wind and hair power for industrial electricis Boteront and wireless telephone Service can substitute telepono come an attemet music service Do you Low tre med to an irid or smartphone has become a subsche based music stones. The more substitute products and services in your then you can contri pecint and the lower your profit margins Customers Aperitable company depends in large measure on its ability to me semain cuscomers while denying them to competitors and charge The power of customers grows if they can easily switch to a competit acts and services or if they can force a business and its competitors to on price alone in a transparent marketplace where there is little prodotto ferentiation and will prices are known instantly (such as on the inte Instance in the used college textbook market on the Internet, sade tomen can find multiple suppliers of just about any current college In this case, online customers have extraordinary power over used booktra Suppliers The market power of suppliers can have a significant impact on form for Especially when the firm cannot raise prices as fast as can suppliers. The different supplies a firm has the greater control it can exercise over sur Chapter 3-tomation Systems and Supercel tutores such as we ve capto the count delem which to soldunded to be derd. Wat uhme trans dectly to supple ystem Wein ko co ring merchand mot dem In terms of price, quality, and delivery schedules. For instance, manicure of laptop PCs almost always have multiple competing appliers of key compo- nents, such as keyboards, hard drives and display to Information System Strategies for Dealing with Competitive Forces What is a firm to do when it is faced with all these competitive forces and how can the fimm se information system to counteract some of these forces? How do you prevent substitutes and inhibit now market tants? There are four terlestritele, cach of which often is enabled by using information technol ogy and systems low-cost leadership product differentiation, focus on market niche, and strengthening customer and supplier intimacy Low-Cost Leadership the information aystems to achieve the lowest operational costs and the lowest prices. The classic sample ts Walmart By keeping prices low and shelves well stocked using a legendary inventory teplenishment system. Walmart became than leading metall business in the United States. Wilmar's continuous replenishment system sends orders for new merchandise directly to suppliers as soon as con cni puy for their purchases at the cash register Point-of-sale terminas record the har code of each item passing the checkout counter and send a purchase tlon directly to a central computer at Walmart headquarters. The computer col lects the orders from all walmart stores and transmit them to suppliers Supplies cat al cos Wilmar's sales and inventory data ing web technology Because the system replenishes inventory with lightning speed, Walmart do not need to spend much money on maintaining large inventories of goods In its own warehouse. The system also enables Walmart to adjust purchases of store items to meet customer demands. Competitors, such as Sears have been spending 249 percent of sales on overhead. But by using systems to keep oper ating costs low, Walmart pays only 16.5 percent of sales revenue for overhead, Opruting costs average 20.7 percent of sales in the retail industry.) Walmart's contos replenishment system is also an example of an efficient customer response system. Anettcrent customer response system directly links consumer hehuvior to distribution and production and supply chains Wilmar's continuous replenishment system provides such an efficient customer response. 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In December 2018 YedEx unes Money A3 84 per pics which will provide next day and overnight E Hours Delivery Options for to my when it is Molly Saving to come over the come customers. TedEx is also in poche delivery seven davek other e shpes pouble for Anon pote with Amazon viilettan How does United Parcel Services numaty this competitive arena? Unlike Us cuirirsi Arame door wekening is ties to Amaron. It wants to stay manteppet Ananthipping policies has been plek ter odlas tapti stakl yowth face of touring the brand-mortar alles ! whereas Tedx has broken away from Ama Chapter 3 min in the treatly that increasing the who for Sunday debuted the kind of wat magparaya Wich camwhwin dhe me y lundid the forme The could do the direct delivery time of the commandes son des e more than onder round the United States with en Ede. However sur Morgan Stanley's Shot or rent CASE STUDY QUESTIONS Why sings important for Explain your Cote the shtetases of A Fedex, UPST Hare the related to the company's business model Will Ed in painted WOT The Interactive Salon Osations provide the camp w con leader protesty--the struggle among the major shipping communes such as redes, UPS, now macon, for dominal the common pack og slupping and delivery business Product Differentiation Use intormtion systems to enable outs and service or greatly change the custom convenience in ing your inducts and services Tech imke Cool Facebook, Anum, Apple, and other pouring bilo dollis interest and deployment of new servir undernemers to their montable services and products in under different them from potential contatos The Google us updated Google satans to be more natural continua convention and start plays that display the cut of Assistant to coerul con added in sport to its core Google Maps service to make it with Maps more natural and released Machine Le Kit or develop the supports transition to detection, Label and la recon. The continuam of inovation from the compreensume their products are unique and data in copy Manfacture and retailer ting information systems to create products and wins that are come personalized to fit the presentation of individual citomen. For ampli, Ne sells customed sneakers through NIKE HY YOU Tam on w Chistomers are able to let the type of the color material and personalized trist Nike traits the orders Computinto specially equipped plants in China and Korea. The estan bout the work to reach the comer This hy to offer individually tale lond products or services in the same production resources mas pouc ton led mas eustomization Mom and more companie diferentiating their products not just by the features of the moducts them but also by the entire experience of buying and using the product. This is called the customer experience Partner web INTERACTIVE SESSION MANAGEMENT hrhum with The TO news de som es Customer Experience Management A New Strategic Weapon und both Port depth show be www.my berdasan Thream Teaser the nemone BOTTOCOS Arad ser ut se host worden CASE 51 honest doy bed Filipino Bawa do Ano Bez probe ck Ordering for beste dat ons went on the day dors per The best price where it was avale According to be heat herinner for which Motion porno mothy lee This decres phie du TABLE Our throate the HNH - Print El HT LEACH) H4CH KHI 1 cucuted to they ready for Srces Amartyr Nessbarbers had indicated this the Canada LIK Watsid service to highlight coming altri why can cu company tested a large preview an che cerewet pod besten However, although customers 200 mm pristande Amor asked for this capability, they didn't see unit was actually making it harder for hones programs they wanted to view right away pached higher nived the problem by mowing the coming son in der a section viewers could nice to the in smerte om in uy 1 by maria percent of the Nemad another chance to the hance.net w the opening credits of its serie TV com mes with the Lore opening credit sequences make some TV show episodes anive a week part and pole mamlayan siyon Adrwy by the swedecer more populat causing Netflix to be watch other shows in between Binge view Lego chce Docomer experience for this type of Het when the com sound that the old opening credo ended the experience for people wanting the Wencher des of intim show in a row. Netit te a pair of the water main some of its members, and they loved Malo streaming service Spotify busa vest Zappos who found wanthose with titlure of songs to suit all tastes ? company has its premonalised playlisad Chapter 3 Womation Sy Organy part of a company.com womer experience on the deeply individual music preces. The service to deliver cache vedong with new musiche che day by integrating se establed ones with and mediocese less likely to become bored and they have becoming back for more McDonalds helped electromet spel ence by introducing digital selfondetoks and ble service in late 2008. Is restaurants Bad been experiencing large mers around lunch and as Der time, which were disconging womecast from licines Auer McBeal plement Wong year was led to open in 2011 Enhancing the McDonaldsomt helped the company best deal within pod lidly changing food Gids odcom phility to introducer SWR M Wys 20 W Det on CASE STUDY QUESTIONS 1. What is customer experience management can it contrato competitive advant? 2. How does information technology support tomer experience management Give me How did information technology and custom experience de persons con maktaattorition describe this TABLE 3.3 IT-ENABLED NEW PRODUCTS AND SERVICES PROVIDING COMPETITIVE ADVANT Ameron One-cle shopping Amazonos a tentonick hoping the informs to the Online Music Apple iTunes Apole tal mucomannin rayol other 50 millones Golfsubotomisationing Customers.com other individual per Online boonto person payment PayPal PayPal oral the transfer of money between indbank between bankcounts and credit card to customer experience management as a competitive strategy is described more fully in the Interactive Session en Management ible 3.3 ist number of companies that have developed based products and services that other firms have found ikult to copy-or at least taken long time to copy Focus on Market Niche the information systems to enable a specific market focus and serve this mar row tunget market better than competitors Information systems support this strategy by producing and analyzing data for finely tuned sales and marketing techniques Information systems enable companies to analyze customer buy ing patients, and preferences closely so that they efficiently pitch adver ting and marloeting campaigns to smaller and smaller target markets The data come from a range of sources credit card transactions dem raphic data, purchase data from checkout counter anders at supermarkets and mall store and data collected when people access and interact with web tes sophisticated software tools find patterns in the large pools of data and Inter rules from them to nide decision making Analysis of such data driver one-to-one mureting that mata personal messages based on individuale preference for ampleHilton Hotel One system analyzes detailed dati oferint de How Part One One Nero TABLES COMPUTER donal COM tanto de data Candle the Home The Wa other and in the de code the shoot and coordinates in the Strengthen Customer and Supplier Intimacy ter with may with us and other and westety the worst nad time in tudo le super decide how and when to de Ark of CTO for by to use porn increase switching costs to one competine product and loyalty to your fir Lethevesles we had como estatuty wil w the For me the place to Walmart han tactily wed a low Oto be one unique new services through the underforing Sma The cha The Internet's Impact on Competitive Advantage Dec at there the traditional competitive forces are still compty has become much more intense (Porter 2001 dowy based on universal standards that any company.com trawy to add to compete on price alone and for new competion maret Becase information is available to everyone the Internet Burning power of casts, who can quickly find the lowest.com on the welt sluve been depened Table 3.5 sammaries reas of the Internet on business Bemsidente The Internt harly destroyed some industries and has ed more For tice the prime encyclopedia Industry and my industry have been early detimated by the availability of EXAME TABLE SA FOUR BASIC COMPETITIVE STRATEGIES TATTO DESCRIPTION hetim pitores la periods and serves a lower price in Woman htuch, device ander Produs Fonology on the market Claros e soyuty with and Toyota AD Chapter 3 Information System. Organito, . The principal interest groups affected by the system and the audes of workers who will be using the system The kinds of a decisions and basiness proces that the information system is designed to 3-3 How do Porter's competitive forces model, the value chain model, synergies, core competencies, and network economics help companies develop competitive strategies using information systems? In almost every industry you examine, you will find that some time do bet ter than most others. There's almost always a standout firm. In the automo tive industry, Toyota is considered a superior performer. In pure online retail Amazon is the leader in offline retall, Walmart, the largest retaller on earth, is the leader. In web search, Google is considered the leader Firms that do better than others are said to have a competitive advantage over others. They either have access to special resources that others do not, or they are able to use commonly available resources more efficiently-usually because of superior knowledge and Information assets. In any event, they do butter in terms of revenue growth, profitability of productivity prowth effi- ciency), all of which ultimately in the long run translate into higher stock mar- ket valuations than their competitors But why do some firms do better than others and how do they achieve competitive advantage? How can you analyze a business and identity its stra tegic advantages? How can you develop a strategic advantage for your own business? And how do information systems contribute to strategie advantages? One answer to that question is Michael Porter's competitive forces model Porter's Competitive Forces Model Arguably, the most widely used model for understanding competitive advantage is Michael Porters competitive forces model (se 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 depen- dence of firms on environments. Porter's model is all about the firm's general busi- ness environment. In this model, five competitive forres shape the fate of the firm Traditional Competitors All firms share market space with other competitors who are continuously de vising 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 har rions to entry, whoras in other industries, entry is very difficult. For instance, ut is fairly easy to start a plaza business or just about any small retail busi- ness, but it is much more expensive and difficult to enter the computer chip business which has very high capital costs and requires significant expertise and knowledge that are hard to obtain. Now companies have several possible








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