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STRATEGIC USE OF IT FOR COMPETETIVE ADVANTAGE. Group Assignment 2. Porter’s 5 Competitive Forces. - Model to analyze competition developed by Prof Porter of Harvard - Have been used to develop strategies to gain competitive edge. Can increase overall capacity of market & reduce prices.
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STRATEGIC USEOF IT FOR COMPETETIVE ADVANTAGE Group Assignment 2
Porter’s 5 Competitive Forces - Model to analyze competition developed by Prof Porter of Harvard - Have been used to develop strategies to gain competitive edge Can increase overall capacity of market & reduce prices Powerful when t he no. is small & supply limited resource i.e. has control over price Powerful when t he no. is small & buy in large volume May arise from product & services offered by other firms
Question Discuss the impact of Porter’s five competitive forces model on any Malaysian company of your choice (e.g. the national car manufacturer, PROTON). Then, describe how Information Technology can be used by that company to survive the impact and sustain the competitive advantage. Good Luck
Choice of Malaysian Company : • Singapore Airline • 2. Thai Airline
Porter’s five competitive forces model a) The impact b) How Information Technology can be used for the company to survive the impact and sustain the competitive advantage.
Brainstorming of Overall Impact : • Air Asia • More economical • Provides nation wide route • Advertising – promotion, customer benefit (redemption point) • Slogan – Everyone can fly • Food services • Other service packages: provide hotel & transportation • Peak session – high demand • Increase the frequency of trip • Normal session – low demand • Promotion (discount) • Others transport: • Ferry (Penang to Langkawi) • Bus (Highway) • Commuter • Train
Impact of the 5 Force Model and role of IT to sustain competitive advantage
Impact of the 5 Force Model and role of IT to sustain competitive advantage