1 / 6

CIS 429: Business Information Systems

CIS 429: Business Information Systems. Chapter 2 Identifying Competitive Advantages. Identifying Competitive Advantages. Competitive advantage: A product or _________that is more valuable than a similar product of service of a competitor. First-mover advantage:

neena
Download Presentation

CIS 429: Business Information Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CIS 429: Business Information Systems Chapter 2Identifying Competitive Advantages

  2. Identifying Competitive Advantages • Competitive advantage: • A product or _________that is more valuable than a similar product of service of a competitor. • First-mover advantage: • Improving market ______ by being first with a competitive advantage. • Environmental scanning: • Acquisition and _________ of information from the environment external to the organization.

  3. Porter’s Five Forces Model • The Five Forces model helps determine the attractiveness of an industry: • Buyer power: ______ when buyers have many choices. • Buyer power can be reduced through loyalty programs, enabled by IT. • Supplier power: _____ when buyers have few choices. • A supply chain consists of all parties involved in material procurement. • A B2B marketplace is an __________-based service that brings many buyers and sellers together. • A private exchange is a B2B marketplace where one buyer posts its needs and opens the bidding to any supplier. • A ________ auction is where suppliers bid lower and lower.

  4. Porter’s Five Forces Model (cont’d) • Threat of substitutes • High when there are many alternatives to a product or service. • Switching cost is the cost to switch to an alternative. • Threat of new entrants • High when it is easy for new _____________ to enter a market • An entry _________ is an expected product or service feature that must be offered. • Rivalry among competitors • High when competition is fierce in a market.

  5. Three Generic Strategies • Broad cost leadership • Large market segment • Broad differentiation • Large market segment • Focused strategy • _______ market • Cost leadership or • Differentiation Compare Hyundai, Audi, Kia, Hummer in terms of these strategies.

  6. Value Creation • Business process • Standardized set of activities to complete a task • Value chain • Series of processes, each adding ______ to the product or service • The goal is to create more value than your competitors. • Value chain _________ • Customers can be surveyed to find out what they value. • IT can support the value chain.

More Related