Business Environment Analysis and Revenue Model
COMM 391
BUSINESS
ENVIRONMENT
ANALYSIS AND
REVENUE MODEL
Introduction to Management
Information Systems
Winter 2013 – Term 2
Learning Objectives
For discussion …
1. Describe Porter’s five forces model and
explain each of the five forces.
2. Demonstrate how a company can add value by using Porter’s value chain analysis.
3. Describe the major revenue models.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
3
What is the Most Important Strategy
Question?
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
4
Porter’s Five Forces Model
Learning Objective 1
• Describe Porter’s five forces model and
Michael Porter identified the following pressures that can hurt potential sales:
Knowledgeable customers can force down prices
explain each of the five forces.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
5
Porter’s Five Forces Model
by pitting rivals against each other.
Influential suppliers can drive down profits by charging higher prices for supplies.
Competition can steal customers.
New market entrants can steal potential investment capital.
Substitute products cam steal customers.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
6
Buyer Power
Porter’s Five Forces Model analyzes the competitive forces in order to assess the potential for profitability in an industry.
The ability of buyers to affect the price of an item. Possible ways to reduce buyer power:
Switching cost – Manipulating costs that make
customers reluctant to switch to another product or service.
Loyalty program – Rewards customers based on the amount of business they do with a particular organization.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
7
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
8
Supplier Power
Supplier Power (cont’d)
The suppliers’ ability to influence
BUSINESS
ENVIRONMENT
ANALYSIS AND
REVENUE MODEL
Introduction to Management
Information Systems
Winter 2013 – Term 2
Learning Objectives
For discussion …
1. Describe Porter’s five forces model and
explain each of the five forces.
2. Demonstrate how a company can add value by using Porter’s value chain analysis.
3. Describe the major revenue models.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
3
What is the Most Important Strategy
Question?
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
4
Porter’s Five Forces Model
Learning Objective 1
• Describe Porter’s five forces model and
Michael Porter identified the following pressures that can hurt potential sales:
Knowledgeable customers can force down prices
explain each of the five forces.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
5
Porter’s Five Forces Model
by pitting rivals against each other.
Influential suppliers can drive down profits by charging higher prices for supplies.
Competition can steal customers.
New market entrants can steal potential investment capital.
Substitute products cam steal customers.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
6
Buyer Power
Porter’s Five Forces Model analyzes the competitive forces in order to assess the potential for profitability in an industry.
The ability of buyers to affect the price of an item. Possible ways to reduce buyer power:
Switching cost – Manipulating costs that make
customers reluctant to switch to another product or service.
Loyalty program – Rewards customers based on the amount of business they do with a particular organization.
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
7
COMM 391 - W2013 Term 2
© 2013 – Kafui Monu, Y.M. Cheung
8
Supplier Power
Supplier Power (cont’d)
The suppliers’ ability to influence