Module 3 Flashcards
What is competitive advantage?
Any assets that provide an organization with an edge against its competitors in some measure such as cost, quality, or speed. It also helps an organization to control a market and to accrue larger-than-average profits
What is business environment?
The combination of social, legal, economic, physical, and political factors in which businesses conduct their operations. Significant changes in any of these factors are likely to create Business Pressures on organizations
How do organizations respond to pressures?
They respond to various pressures by implementing Information Technology (IT) such as strategic systems, customer focus, make-to-order and mass customization, and e-business
What are the different types of business pressures?
Market Pressures
Technology Pressures
Societal/Political/Legal Pressures
What are market pressures?
Business pressures generated by the global economy, intense competition, the changing nature of the workforce, and powerful customers
What are technology pressures?
Business pressures caused by technological innovation and information overload
What are societal/political/legal pressures?
Business pressures related to social responsibility, government regulation/deregulation, spending for social programs, spending to protect against terrorism, and ethics
What are some market pressures?
Globalization
Changing nature of the workforce
Powerful customers
What are some technology pressures?
Technological innovation and obsolescence
Information overload
What are some societal/political/legal pressures?
Social responsibility
Compliance with government regulations
Protection against terrorist attacks
Ethical issues
What are some organizational responses?
Strategic systems
Customer focus
Make-to-order
Mass customization
E-business and E-commerce
What are some Strategic IS’s?
Porter’s Competitive Forces Model
Porter’s Value chain Model
Strategies for Competitive Advantage
Business - Information Technology Alignment
What is Porter’s Five Forces Model?
- The threat of new competitors
- The bargaining power of suppliers
- The bargaining power of customers (buyers)
- The threat of substitute products or services
- The rivalry among existing firms in the industry
What is Porter’s Value Chain Model?
Value Chain
Two Categories of Organization Activities in the Value Chain
Primary Activities
Support Activities
What are some strategies for competitive advantage?
Cost leadership strategy
Differentiation strategy
Innovation strategy
Organizational effectiveness strategy
Customer orientation strategy
