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Information Systems for Competitive Advantage: Michael Porter's Model and Strategies, Assignments of Management Information Systems

short notes on few topics of MIS

Typology: Assignments

2019/2020

Uploaded on 04/15/2020

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sukhjinder_singh 🇮🇳

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Information Systems to Achieve Competitive
Advantage
Firms with a competitive advantage over others
typically have access to special resources that
others do not or are able to use resources more
efficiently, resulting in higher revenue growth,
profitability, or productivity growth (efficiency), all
of which ultimately in the long run translate into
higher stock market valuations than their
competitors.
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Information Systems to Achieve Competitive

Advantage

  • (^) Firms with a competitive advantage over others

typically have access to special resources that

others do not or are able to use resources more

efficiently, resulting in higher revenue growth,

profitability, or productivity growth (efficiency), all

of which ultimately in the long run translate into

higher stock market valuations than their

competitors.

Michael Porter's competitive forces model

1. Traditional competitors: Existing firms that share a

firm's market space

2. New market entrants: New companies have certain

advantages, such as not being locked into old equipment

and high motivation, as well as disadvantages, such as

less expertise and little brand recognition.

Some industries have lower barriers to entry, ie: cost less

for a new company to enter the field.

Michael Porter's competitive forces model

competitors to compete on price alone in a

transparent marketplace where there is

little product differentiation and all prices are

known instantly (such as on the Internet).

5. Suppliers: The more different suppliers a firm

has, the greater control it can exercise over

suppliers in terms of price, quality, and

delivery schedules

Michael Porter's competitive forces model

Strategies used to manage competitive forces

  • (^) Focus on market niche: Use information systems to enable a specific market focus and serve this narrow target market better than competitors. Information systems support this strategy by producing and analyzing data for finely tuned sales and marketing techniques. Hilton Hotels uses a customer information system with detailed data about active guests to provide tailored services and reward profitable customers with extra privileges and attention.
  • (^) Strengthen customer and supplier intimacy: Use information systems to tighten linkages with suppliers and develop intimacy with customers. Chrysler Corporation uses information systems to facilitate direct access from suppliers to production schedules, and even permits suppliers to decide how and when to ship suppliers to Chrysler factories. This allows suppliers more lead time in producing goods. Strong linkages to customers and suppliers increase switching costs (the cost of switching from one product to a competing product) and loyalty to your firm.