itm309 exam one study guide (better)

itm309 exam one study guide (better) - Sheet1 Page 1 ITM...

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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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This note was uploaded on 11/30/2009 for the course MSC 300 taught by Professor Blakeashdown during the Spring '08 term at Michigan State University.

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itm309 exam one study guide (better) - Sheet1 Page 1 ITM...

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