MIS Final Fcards

  1. The Competitive Forces Model...
    a tool to formulate strategy by examining the environment in which your
    organization competes.

    forces create the
    competitive environment:
    • In order to be competitive in an industry, you must
    • LOWER one of these forces
    • 1. Buyer power – high when consumer has many choices

    • 2. Supplier power – is high when a company has few
    • choices from whom to buy.

    • Industries – Oil,
    • Diamonds, M$FT

    • 3. Substitute force – high when there are many
    • alternatives

    • 4. New competition force – high when it is relatively
    • easy for new entrant to set up business

    • companies don’t
    • want others to eat into their market share

    • *the internet
    • helped this force to stay high – easy to start a website

    • restaurant is
    • high, real estate brokerage is high

    • 5. Current competition force is high when there are many
    • competitors going after the same customers

    • many companies in
    • the industry offering undifferentiated products or services
  2. Countering Competitive Forces
    4 Strategies
    • four strategies:
    • Low-cost leadership – ex. Walmart,Southwest
    • Product differentiation – ex. Apple created a game changer in iPod and iPhone
    • eBay bought Paypal
    • Focus on market niche – look for a segment to capture instead of being all things to all people
    • Linkage (strengthen customer loyalty, build in switching
    • costs, strengthen supplier intimacy)
    • creating tighter
    • alliance with buyers or suppliers
    • making it tough
    • to switch to a competitor

    sticky websites
  3. The Value Chain Method

    views the organization as a chain - or series - of activities, each of which adds
    value to the product or service for the customer.

    chain processes fall into two categories:
    nPrimary activities

    nSupport activities
  4. Identify Specific Activities That Require IT Support
    • Using
    • the value chain method, business activities requiring IT support are
    • identified, and the result is a list of IT systems to develop.
    • An important part of
    • this method is identifying key linkages in interdependent activities.
  5. How do you create a sustainable
    advantage with the value chain method?
    • If you can create something among the
    • linkages, your rival will have a harder time to perceive these linkages
  6. nThree Ways of Enhancing
    Organizational Competitiveness
    • nStrategic Alliances: formpartnerships with other organizations
    • nTQM: engage in best practices and benchmark performance
    • nAchieve operational excellence: find ways to become more efficient
Card Set
MIS Final Fcards