ITM 309 exam 1 - Information Systems in Business Chapter 1...

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Information Systems in Business – Chapter 1 Apple Case and Class Discussion Porter’s Five Forces Model -determines relative attractiveness of an industry. They are bargain power of customers (buyer power-high when many choices, few when few; can be limited by loyalty programs), bargain power of suppliers (supplier power-low when buyers have many choices and high when few; can create competitive advantage through locating alt. sources in B2B marketplace), rivalry of competitors (high when competition fierce, low when not; overall trend toward increased competition), threat of entrance (high when easy entrance, low when hard; entry barrier-product/service feature customers have come to expect from organizations in an industry and must be offered from an entering industry to compete/survive), threat of substitutes (high when many alternatives, low when few; switching cost-cost can make customer reluctant to switch to another product/service) Porter’s Three Generic Strategies Model -1)broad cost leadership (low cost that appeal to large audience), 2)broad differentiation (several price points, something separates it from other vehicles, appeals to large stratified audience), 3)focused strategy (appeal to certain group) Value Chain -views an organization as a series of processes each of which adds value to the product or service for each customer. Value Chain Analysis -know figure 1.18 Business Competitive Advantages Using IT Enablers -competitive advantage- product/service that customers place a greater value on than similar offerings from a competitor. First mover advantage -occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. Environmental scanning -acquisition/analysis of events/trends in the environment external to an organization. 3 tools used in to analyze/develop competitive advantages- Porters 5 forces, Porter’s three generic strategies, and value chains. Business Processes – Tech Plug-In T12
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This note was uploaded on 03/19/2008 for the course ITM 309 taught by Professor Rodammer during the Spring '08 term at Michigan State University.

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ITM 309 exam 1 - Information Systems in Business Chapter 1...

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