Chapter 2
This presentation is the property of its rightful owner.
Sponsored Links
1 / 25

Competitive Advantage PowerPoint PPT Presentation


  • 106 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 2 STRATEGIC AND COMPETITIVE OPPORTUNITIES Using IT for Competitive Advantage. Competitive Advantage Providing a product or service in a way that customers value more than what the competition is able to do. In perspective (do not be fooled) …. Its not the IT, it’s the People

Download Presentation

Competitive Advantage

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Competitive advantage

Chapter 2

STRATEGIC AND COMPETITIVE OPPORTUNITIES

Using IT for Competitive Advantage

Competitive Advantage

Providing a product or service in a way that customers value more than what the competition is able to do.


Competitive advantage

In perspective (do not be fooled) …

Its not the IT, it’s the People

It is not the information technology that gives a company the competitive advantage; it is the way people use the technology that makes the difference.


Competitive advantage

… Main Chapter Menu…

Competitive Advantage Examples

  • FedEx

  • Schwabs

  • Dell

  • Cisco

    Developing A Strategy For The Internet Age

  • The five forces model

  • The three generic strategies

  • The value chain

    Key E-Commerce Strategies

  • Mass customization

  • Disintermediation

  • Global reach

    The U.S. Airline Industry


Competitive advantage examples federal express

23 159 867 632  www.canadapost.ca

Competitive Advantage ExamplesFederal Express

FedEx Package Tracking Screen

fedex message


Competitive advantage examples charles schwab

Competitive Advantage ExamplesCharles Schwab


Competitive advantage examples dell computer

Competitive Advantage ExamplesDell Computer

Sell ----source -----ship

Buy ---hold--- sell


Competitive advantage examples dell computer1

Competitive Advantage ExamplesDell Computer

  • Information partnership - lets two or more companies cooperate by integrating their IT systems.


Competitive advantage examples cisco systems

Competitive Advantage ExamplesCisco Systems

  • Cisco Systems - a leader in utilizing the direct sell model over the Internet.

  • Business to Business (B2B) - companies whose customers are primarily other businesses.

  • Business to Consumer (B2C) -companies whose customers are primarily individuals.


Developing a strategy for the internet age

Developing A Strategy For The Internet Age

  • Porter’s three frameworks are:

    • The Five Forces model

    • The Three Generic Strategies

    • The Value Chain


Developing a strategy for the internet age the five forces model

Developing A Strategy For The Internet AgeThe Five Forces Model

Video: porter


Developing a strategy for the internet age using the five forces model

Developing A Strategy For The Internet AgeUsing the Five Forces Model

  • Buyer power

    • Giving choices to the buyer

    • For example: hotel chains

      • Give points

      • Other loyalty programs

      • Cash the points for free hotel stays at one of their resort hotels

    • Such programs have the effect of increasing the likelihood that a traveler will stay at a single chain.


Developing a strategy for the internet age using the five forces model1

Developing A Strategy For The Internet AgeUsing the Five Forces Model

  • Supplier power

    • The objective is to ___________ supplier power.

      • B2B marketplace - an Internet-based service which brings together many buyers and sellers.

      • Find a way to put more information into the buyer’s hands


Developing a strategy for the internet age using the five forces model2

Developing A Strategy For The Internet AgeUsing the Five Forces Model

  • Threat of substitute products or services

    • Consider the introduction of alternative IT products such as income tax preparation software.

      • Consumers now use it.

      • Accountant has less clients.

      • Accountant livelihood is threatened.


Developing a strategy for the internet age using the five forces model3

Developing A Strategy For The Internet AgeUsing the Five Forces Model

  • Threat of new entrants

    • Entry barrier - a product or service feature that customers have come to expect from companies in a particular industry.

    • A good example is what banks did:

      • Introduce the bank card and as many ATMs around the world as possible.

      • Banking on the internet to pay bills, transfer funds and print reports.


Developing a strategy for the internet age using the five forces model4

Developing A Strategy For The Internet AgeUsing the Five Forces Model

  • Rivalry among existing competitors

    • Using IT systems to be more ___________ and compete more strongly with others.

    • An example would be PRICE.

      • Computer systems can be bought from two different stores but one is cheaper than the other.

      • This is possible when one company uses IT in such a way to reduce its price.


Developing a strategy for the internet age the three generic strategies

Developing A Strategy For The Internet AgeThe Three Generic Strategies

Figure 2.5

The Three Generic Strategiespage 52


Developing a strategy for the internet age the value chain

Developing A Strategy For The Internet AgeThe Value Chain

Once you understand how IT can help you develop business strategy, you can ensure that IT supports all important business ___________ .


Developing a strategy for the internet age the value chain1

Developing A Strategy For The Internet AgeThe Value Chain

The Components of a Value Chain


Manufacturing value chain

Manufacturing Value Chain

Where has information system added value in the value chain?


Key e commerce strategies

Key E-Commerce Strategies

  • Three capabilities made possible by the Internet are could help firms gain competitive advantage:

    • Mass ___________ and ___________

    • ___________

    • Global reach


Key e commerce strategies mass customization and personalization

Key E-Commerce StrategiesMass Customization and Personalization

  • ___________ - a business gives its customers the opportunity to tailor its product or service to the customer’s specifications.

  • ___________ - a Web site can know enough about your likes and dislikes that it can fashion offers that are more likely to appeal to you.

  • ___________ - a method of placing you in an affinity group of people with the same characteristics.


Key e commerce strategies disintermediation

Key E-Commerce StrategiesDisintermediation

  • Disintermediation – using the Internet as a delivery vehicle, intermediate players in a distribution channel can be bypassed.


Key e commerce strategies global reach

Key E-Commerce StrategiesGlobal Reach

  • ___________ - the ability to extend a company’s reach to customers anywhere there is an Internet connection, and at a much lower cost.

  • ___________ - when you have given a merchant your permission to send you special offers.


The u s airline industry airline reservation systems

The U.S. Airline IndustryAirline Reservation Systems

  • Reservations systems

  • Frequent flyer programs

  • Yield management systems

  • Disintermediating the Travel Agent

  • Show porter video


Chips system from earlier

Chips system from earlier

  • What kinds of information systems could be beneficial? Why?

  • What kinds of information products would be helpful? Why?


  • Login