Class 5-SP15 - Strategy and Technology.pptx

Class 5-SP15 - Strategy and Technology.pptx - Strategy and...

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Leadership Strategy and Technology CLASS #5 Introduction to IT Management White
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Competitive Advantage The ability to consistently outperform industry peers is called a sustainable competitive advantage How can companies like online grocer FreshDirect outperform traditional grocery stores?
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Michael E. Porter Books by Porter
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Industry Structure Industry Structure Competiti ve Strategy Competiti ve Strategy Value Chains Value Chains Business Processes Business Processes Informatio n Systems Informatio n Systems Organizational Strategy, IS & Competitive Advantage 5 Models for Analyzing Business Rivalry among existing competitors Rivalry among existing competitors Potential new entrants Potential new entrants Power of buyers Power of buyers Threat of substitute products or services Threat of substitute products or services Power of suppliers Power of suppliers Logon to website Logon to website Place order Place order Save order Save order Pay for order Pay for order Assembl e order Assembl e order Ship order Ship order Update custome r shoppin g list Update custome r shoppin g list Lowest cost across the industry Lowest cost across the industry Better product/ser vice across the industry Better product/ser vice across the industry Lowest cost within an industry segment Lowest cost within an industry segment Better product/ser vice within an industry segment Better product/ser vice within an industry segment Examine industry structure – Porter’s 5 Forces Model Choose your competitive strategy – Porter’s Model of Competitive Strategy Link the parts of the value chain – Porter’s Value Chain Model Streamline business processes – any business process diagram Design information system – 5-Component IS Framework Enable business processes Improve value chain links to increase efficiency Support competitive strategy Influence industry structure
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Operational Efciency Dell had a great competitive advantage in the 1980’s / 1990’s with operational efciency. There assembly line was superb and they were able to have a price advantage But (as the book says) “Nothing lasts Forever.
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Dell continued Dell sold directly to consumers – no ‘brick and mortar’ businesses Very efcient production / assembly line Order Fexibility – so±tware, operating system, memory, printer, monitor, etc. But … others learned how to duplicate (and improve) upon Dell’s
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Dell History 1984 — At the age of 19, Michael Dell found PC's Limited with $1,000 and a game- changing vision for the technology industry. 1988 — Initial public oFering, raising $30 million and increasing market capitalization from $1,000 to $85 million. 1992 — Dell debuts on the ±ortune 500, making Michael Dell the youngest CEO on the list.
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Class 5-SP15 - Strategy and Technology.pptx - Strategy and...

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