Value Chain and Competitive Forces Essay Example
Value Chain and Competitive Forces:
Effects of Information Technology
Module 2 Case
John Dow
ITM524: Fundamentals of Information Technology Management
Dr. Somebody Somebody
February 4, 2012
Introduction Businesses are established with the sole reason to provide a product or service to a customer with the intend to make a profit. The amount of time, effort, and resources spend should generate a profit. Then, the profit depends “on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay of the products exceeds the cost of the activities in the value chain” (NetMBA.com). Ideally, these products and/or services outpace the competition. In order to do so, Michael Port, suggest a company must sustain long-term profitability (Porter, 2008). He suggests one must look beyond your direct competitors; as explained in his revolutionary 1979 HBR article and further defined in 2008. There, he identifies “the five forces that shape industry competition”, for businesses to utilize in shaping a strategic vision for long-term sustainability; or better know for the organizations’ sustainability. This paper will deliver as points of discussion or analysis the value chain and competitive forces based on ‘The Mini-cases: 5 companies, 5 strategies, 5 transformations article and cases; and what, if any, affects did Information Technology have on the value chain and competitive forces on those five organizations.
Mini Case # 1 – A Better Place In the first mini case, a company called Better Place presents its challenge within timely opportunity. It wants to enable the fastest way to bring electronic filling stations, as future technology, to a market of electronic vehicles. To gain a “first in” advantage of this new market, the company takes in to full consideration the Cost Advantage and the Value Chain. As identified
Effects of Information Technology
Module 2 Case
John Dow
ITM524: Fundamentals of Information Technology Management
Dr. Somebody Somebody
February 4, 2012
Introduction Businesses are established with the sole reason to provide a product or service to a customer with the intend to make a profit. The amount of time, effort, and resources spend should generate a profit. Then, the profit depends “on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay of the products exceeds the cost of the activities in the value chain” (NetMBA.com). Ideally, these products and/or services outpace the competition. In order to do so, Michael Port, suggest a company must sustain long-term profitability (Porter, 2008). He suggests one must look beyond your direct competitors; as explained in his revolutionary 1979 HBR article and further defined in 2008. There, he identifies “the five forces that shape industry competition”, for businesses to utilize in shaping a strategic vision for long-term sustainability; or better know for the organizations’ sustainability. This paper will deliver as points of discussion or analysis the value chain and competitive forces based on ‘The Mini-cases: 5 companies, 5 strategies, 5 transformations article and cases; and what, if any, affects did Information Technology have on the value chain and competitive forces on those five organizations.
Mini Case # 1 – A Better Place In the first mini case, a company called Better Place presents its challenge within timely opportunity. It wants to enable the fastest way to bring electronic filling stations, as future technology, to a market of electronic vehicles. To gain a “first in” advantage of this new market, the company takes in to full consideration the Cost Advantage and the Value Chain. As identified