MGT 300 - Chapter 2

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IDENTIFYING COMPETITIVE ADVANTAGE

INTRODUCTION

• What is competitive advantage ?

- A product or service that an organization's customers place a greater value on than similar offerings from a competitor.
- Unfortunately, CA is temporary because competitors keep duplicate the strategy.
- Then, the company should start the new competitive advantage.

Five Forces Model :

• Micheal Porter's Five Forces Model is useful tool to aid organization in challeging decision whether to join a new industry or industry segment.

There are Five Forces Model :

1. Buyer Power
2. Supplier Power
3. Threat of Substitute products & Service
4. Threat of new entrants
5. Rivalry among existence competitors

website : //www.mindtods.com/pages/article/newTMC08.htm

1. Buyer Products

• High - when buyers have many choices of whom to buy.
• Low - when their choices are few.

2. Supplier Power

• High - when buyers have few choices of whom to buy from.
• Low - when their choices are many.

3. Threat of Substitute products & Service

• High - when there are many alternatives to a product or service.
• Low - when there are few alternatives from which to choose.

4.Threat of new entrants

• High - when it is easy for new competitors to enter a market.
• Low - when there are significant entry barriers to entering a market.

5. Rivalry among existence competitors

• High - when competition is fierce in a market.
• Low - when competition is more complacent.

THE THREE GENERICS STRATEGIES

1. Cost Leadership 

• Becoming a low-cost produce in the industry allows the company to lower prices to customers.
• Competitors with higher costs cannot afford to compete with the low-cost leader on price.

2. Differentiation

• create competitive advantage by distinguishing their products on one or more features important to their customers.

3. Focused Strategy

• Target to a niche market.
• concentrates on either cost leadership or differentiation.

The Value Chains - Targeting Business Processes

• Supply Chain - a chain or series of processes that adds value to product & service for customer.
• Add value to its products and services that support a profit margin for the firm

THE END :) 

MGT 300 - Chapter 1

 My Revision For Chapter 1

Information Technology is like a business that we can sell in online and easy to follow up such as Online business, Instagram, facebook and etc. In this subject I need to right down a little revision that I have learn. For me, its interesting and easy to understand. check it up my BLOGGER for this subject and you guyss can see many thing and point.

INFORMATION TECHNOLOGY'S ROLE IN BUSINESS

• Information technology is everywhere in business

INFORMATION TECHNOLOGY BASICS

• Information Technology (IT) - a field concerned with the use of technology in managing and processing information
• Information technology is an important enabler of business success and innovation
• Management Information Systems (MIS) - a general name for the business function and academic discipline covering the application of people, technologies and procedures to solve business problems
• MIS is a business function,similar to Accounting,Finance,Operations and Human Resources
• When beginning to learn about information technology is an important to understand such as data, information and business intelligence IT resources also IT cultures

          

INFORMATION TECHNOLOGY'S IMPACT ON BUSINESS OPERATIONS

• Organizations typically operate by functional areas or functional silos
• Functional areas are interdependent

INFORMATION DATA, INFORMATION AND BUSINESS INTELLIGENCE

•  DATA - raws facts that describe the characteristics of an event
• INFORMATION - data converted into a meaningful and useful context
• BUSINESS INTELLIGENCE - applications and technologies that are used to support decision-making efforts

IT RESOURCES

1.  people use
2. information technology to work with
3. information

IT CULTURES

• Information Functional Culture - Employees use information as a means of exercising influence or power over others.
• Information Sharing Culture - Employees across departments trust each other to use information (especially about problems and failures) to improve performances.
• Information Inquiring Cultures - Employees across deparments search for information to better understand the future and align themselves with current trends and new directions.
• Information Discovery Culture - Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.

THE END :)