06_090909_Chpt03 - Chapter 3 Organizational Strategy IS...

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MIS 301 Introduction to IT Management Lizhen Xu IROM Department McCombs School of Business Chapter 3 Organizational Strategy, IS & Competitive Advantage
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Class Business Excel Assignment #1 Due Sep 10 (Thu) -- Tomorrow 11:59pm Deadline Hard; Late Policy Extended Office Hours Sep 10 (Thu) 12:30-2:30pm Help Session : Sep 10 (Thu) 5:00-7:00pm MOD Lab, CBA 5.304 (Optional)
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Chpt 3: Learning Objectives Overview Porter’s five-force model Competitive strategy Value chain IS and competitive advantage
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How does organizational strategy determine IS structure? 5 Models for Analyzing Business
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What Determines Industry Structure? Michael E. Porter’s 5 competitive forces 1. Rivalry among existing firms 2. Threat of substitutions 3. Threat of new entrants 4. Bargaining power of customers 5. Bargaining power of suppliers
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Rivalry Among Existing Firms Rivalry among existing firms – strong when competition is fierce in a market Although competition is always more intense in some industries than in others, the overall trend is toward increased competition in just about every industry
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Threat of Substitutions Threat of substitutions – strong when there are many alternatives to a product or service from which to choose
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Threat of New Entrants Threat of new entrants – strong when it is easy for new competitors to enter a market and weak when there are significant entry barriers to entering a market
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Bargaining Power of Customers Bargaining Power of Customers – strong when customers have many choices of whom to buy from outside options switching cost
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Bargaining Power of Suppliers Bargaining Power of Suppliers – strong when buyers have few choices of whom to buy from
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Porter’s Five-Force Model 5 competitive forces determine profitability in an industry
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What Is Competitive Strategy? Organization’s response to industry
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This note was uploaded on 12/17/2010 for the course MIS 03765 taught by Professor Xu during the Fall '09 term at University of Texas.

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06_090909_Chpt03 - Chapter 3 Organizational Strategy IS...

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