Strategy and IS

Question 1

Competitive advantage

Answer 1

Way a business can do better than its competititors: loyal customers, larger market share, higher profits

Question 2

Competitive strategy

Answer 2

Long-term action plan to help an organization gain its competitive advantages
IT strategy: how to use IT to gain competitive advantages

Question 3

Competitive Strategy Theories and processes

Answer 3

1. Business pressures - know your business environment
2. Porter’s competitive forces - know your business environment
3. SWOT analysis -know your own business
4. Porter’s competitive strategy model, three value disciplines
5. Value Chain
6. Business process

Question 4

Business Pressures

Answer 4

Factors, events, and influences from the business environment

Pressures:

Economics: global economy and strong competition, powerful customers, changing workforce
Responses: Customer focus and service, electronic commerce

Polical/legal” compliance with government regulations and deregulations, social responsability, ethical issues
Responses: better data management, business aliances

Technology: information overload, technological innovations
Response: intelligent data management, business process restructuring and management

Question 5

Porter’s competitive forces model

Answer 5

Asses the industry structure, competition level and dependency

Rivalry (level of competition)
- Threat of New Entrants
-Buyer Power
-Thread of substitutes
-Supplier Power

Question 6

SWOT analysis

Answer 6

Strenght, weakness, opportunities, threats

Question 7

Porter’s competitive Strategy

Answer 7

Explains how businesses can gain a competitive advantage in their industry

Primary strategies:
1- Cost: become the lowest-cost producer in the industry. They minimize production costs. Walmart
2- Differentiation: unique products or services perceived as different and superior through product innovation, brand identity, etc Apple
3. Focus: target a specific market segment and tailor offerings to serve that specific group through cost focus (offering prices to a niche market) or differentiation focus (offerinf specialized, unique prodcuts)

Question 8

Value chain model

Answer 8

Helps business identify specific activities within an organization that creat value and competitive advantage

Divices activities in PRIMARY and SUPPORT activities so company enhance efficiency, reduce costs, or differentiate themselves

Question 9

Business Processes

Answer 9

Organized streams of business activities
-The streamline of activities and sub-activities
-Resources and repositories
-Control flow and data flow
-Narrative the current status in the business
-Identify potential problems and opportunities
Aign IT/IS structure with the competitive strategy