In this chapter you will learn: How can you use information technology to improve your organization and make it better than your competitors? How competitive is your world? What are the main factors affecting a firm’s competitive advantage? Where do you begin looking for an edge?,. | Introduction to MIS Chapter 10 Strategic Analysis Jerry Post Technology Toolbox: GIS Technology Toolbox: Business Analysis Cases: Airlines 1 Outline How can you use information technology to improve your organization and make it better than your competitors? How competitive is your world? What are the main factors affecting a firm’s competitive advantage? Where do you begin looking for an edge? How can you use IT to gain a competitive advantage? Where do you begin your search? How can IT support the operations of the firm to provide a competitive advantage? Why is it so difficult to convince management to make strategic changes? What are the risks of strategic decisions? Why did so many dot-com firms fail? Do their failures mean there is no viable Internet strategy? How do you convince an organization to change strategies? 2 Connections to suppliers and customers. Become the best firm in the industry. Block the competitors by keeping your customers happy. Competition Strategy How competitive is your industry? Even with one or two front-runners, you might have a pack of hungry competitors chasing you down. Competition 2005 Tour de France: Montpellier Competition Mergers and consolidation Pick an industry and name the top firms. Most industries are dominated by five or fewer firms. (Look up concentration ratios.) International Firms: Many large firms around the world compete directly or indirectly. International markets enable firms to become larger—because of more customers. Costs: It is common to move production to locations with large labor pools and low wages. Large firms that compete on price continually squeeze suppliers to cut costs. Consumers have access to increasing amounts of price and comparison data for all products and services. Rivalry Among Existing Competitors Bargaining Power of Buyers Bargaining Power of Suppliers Threat of New Entrants Threat of Substitute Products or Services Porter’s Five Forces Model Government (not part of Porter’s model but . | Introduction to MIS Chapter 10 Strategic Analysis Jerry Post Technology Toolbox: GIS Technology Toolbox: Business Analysis Cases: Airlines 1 Outline How can you use information technology to improve your organization and make it better than your competitors? How competitive is your world? What are the main factors affecting a firm’s competitive advantage? Where do you begin looking for an edge? How can you use IT to gain a competitive advantage? Where do you begin your search? How can IT support the operations of the firm to provide a competitive advantage? Why is it so difficult to convince management to make strategic changes? What are the risks of strategic decisions? Why did so many dot-com firms fail? Do their failures mean there is no viable Internet strategy? How do you convince an organization to change strategies? 2 Connections to suppliers and customers. Become the best firm in the industry. Block the competitors by keeping your customers happy. Competition Strategy How .
