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Unformatted text preview: Sheet1 Page 1 ITM 309 Spring, 2009 Exam One Topics: Review Outline 1. Apple might have gone out of business. 2. Because there should be confidentiality and there should be privacy of information between a company and its customer ba 3. Apple's supplier's had more power at first since they weren't selling a lot of items and buyers had less power.... Over time, c 4. When Apple introduced the iPod/iPhone, it became the substitute. Information Systems in Business h Chapter 1 Apple Case and Class Discussion #1 One of the main factors that brought Apple back from near oblivion was its ability to produce, market, and sell IT products s #2 Apple customers might not want Apple to share their information with other parties. How would you feel if Apple sold all of #3 Buyer power is high when buyers have many choices of whom to buy from and low when their choices are few h When iPod first introduced it was the only MP3 player (no competition) ? Buyer power low h As competition increased, more MP3 players were introduced ? Buyer power increased Supplier power is high when buyers have few choices of whom to buy from and low when their choices are many h When iPod first introduced it was the only MP3 player (no competition) ?Supplier power high h As more competitors entered the MP3 market ? supplier power decreased #4 Threat of substitutes is high when there are many alternatives to a product or service and low when there are few alternativ h When iPod first introduced there were no alternatives ? Threat of substitutes low h The low threat led to Apple having a competitive advantage Porter& s Five Forces Model Porters Five Forces Model determines the relative attractiveness of an industry and includes: 1.) Buyer Power ¡ is high when buyers have many choices of whom to buy from and low when their choices are few. To reduc 2.) Supplier Power ” is high when buyers have few choices of whom to buy from and low when their choices are many. 3.) Threat of Substitute Products or Services & is high when there are many alternatives to a product or service and low whe 4.) Threat of New Entrants ” is high when it is easy for new competitors to enter a market and low when there are significant e 5.) Rivalry Among Existing Competitors & is high when competition is fierce in a market and low when competition is more com Porter& s Three Generic Strategies Model (1) broad cost leadership, (2) broad differentiation, (3) focused strategy Broad strategies reach a large market segment, while focused strategies target a niche market. A focused strategy concentrates on either cost leadership or differentiation. Hyundai is following a broad cost leadership strategy. Hyundai offers low-cost vehicles, in each particular model stratification, Audi is pursuing a broad differentiation strategy with its Quattro models available at several price points. Audit s differentiation Kia has a more focused cost leadership strategy. Kia mainly offers low-cost vehicles in the lower levels of model stratification Sheet1...
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- Spring '08