Chapter 3Notes - A company also has to put great emphasis on their relationship with suppliers and customers because this is what their business

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Chapter 3 Notes Using Information Systems to achieve competitive advantage can be described by Porter’s competitive forces model. This model “provides a general view of the firm, its competitors, and the firm’s environment.” In this model five competitive forces decide about the firm’s future. Traditional Competitors are companies which produce similar products and services within the market. Firms compete to attract consumers and make sure that they have the strategy and resources to keep their customers satisfied. New Market Entrants are companies that are entering the business industry. However, every firm have a different way of entering the market. The way a computer firm enters a market is different from how a pizza business introduces itself into a market. They can have high or low barriers of entry depending on how high are the capital costs. In just about every industry there will be Substitute Products that can be bought. Firms make sure that they can make quality products with minimum cost of resources.
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Unformatted text preview: A company also has to put great emphasis on their relationship with suppliers and customers because this is what their business revolves around. A firm makes sure that they have different choices of suppliers so as to regulate and receive raw materials on time in order to meet customers needs. This is also a strategy which is used to attract and keep customers. Businesses attains it's competitive advantage with the great help of informations systems. The competitive forces, which assist in competitive advantage, include traditional competitors, new market entrant, subsitute products, customers, and suppliers. Also, the methods that businesses utilize in order to fight against these competitive forces are vital and important. The internet also influences competitive advantage greatly. With this help and the help of informations systems, businesses compete on a global scale, with different business models. Furthermore, a business can compete on quality, design and business process....
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This note was uploaded on 03/02/2012 for the course IS 3003 taught by Professor Rao during the Spring '08 term at The University of Texas at San Antonio- San Antonio.

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