Idea Exchange Case Study
Embracing Information Technology (IT) can help Idea Exchange improve its stake in the market by changing its business environment in three key ways:
It will change the dynamics of competition by changing Idea Exchange’s structure.
It can promote competitive advantage by giving Idea Exchange new means of outperforming rival companies by offering substitute services
It will spawn Idea Exchange from within current operations of conducting businesses (Kimberly & Evanisko, 1981)
Lack of global presence: Relies on Physical offices situated around the U.S. that has negative economic and development consequences. Therefore:
IE has fewer customers which translate to fewer sales and limited profits.
High spending in traditional forms of advertisements to attract customers; payrolls; rent for dozens of offices around the U.S., and other routine operations. …show more content…
o Limited access to Idea Exchange o Hard to expand a client base o The effects
Slide 3
• Explain how Porter’s Five Forces negatively impact IE in its brick and Mortar state:
• Increase in buyer power with increase in competition. Customers will have a variety of other choices to choose from. However, customers will be willing to overlook, not ignore, other choices if IE can embrace technology so that it changes its traditional business strategy to achieve operational effectiveness to facilitate improved customer service, and employee scheduling; such that, customers can access services whenever they need them.
• Supplier power: In its state, suppliers (people with ideas) have a high power, because they are in control of pricing and setting up of price ranges for their ideas.
• Threat of new entrants / threat of substitute services: With the increased demand of Research & Development (R&D), by many companies and organizations, there is an increase of independent contractors who have better platforms of selling their ideas for a cheaper
It will change the dynamics of competition by changing Idea Exchange’s structure.
It can promote competitive advantage by giving Idea Exchange new means of outperforming rival companies by offering substitute services
It will spawn Idea Exchange from within current operations of conducting businesses (Kimberly & Evanisko, 1981)
Lack of global presence: Relies on Physical offices situated around the U.S. that has negative economic and development consequences. Therefore:
IE has fewer customers which translate to fewer sales and limited profits.
High spending in traditional forms of advertisements to attract customers; payrolls; rent for dozens of offices around the U.S., and other routine operations. …show more content…
o Limited access to Idea Exchange o Hard to expand a client base o The effects
Slide 3
• Explain how Porter’s Five Forces negatively impact IE in its brick and Mortar state:
• Increase in buyer power with increase in competition. Customers will have a variety of other choices to choose from. However, customers will be willing to overlook, not ignore, other choices if IE can embrace technology so that it changes its traditional business strategy to achieve operational effectiveness to facilitate improved customer service, and employee scheduling; such that, customers can access services whenever they need them.
• Supplier power: In its state, suppliers (people with ideas) have a high power, because they are in control of pricing and setting up of price ranges for their ideas.
• Threat of new entrants / threat of substitute services: With the increased demand of Research & Development (R&D), by many companies and organizations, there is an increase of independent contractors who have better platforms of selling their ideas for a cheaper