Apple Case and Class Discussion
Buyer power is low because you have one choice to buy iPhone. As a company you want to take advantage of that. If you’re just buying a cell phone buyer power is high because you have many choices from iPhone to Android.
(narrow market, high cost)
Porter’s Five Forces Model 1. Buyer power- the power of customers to drive down prices (bargaining power of customers) 2. Supplier power- the power of suppliers to drive up prices of materials (bargaining power of suppliers) 3. Rivalry amongst existing competitors- the power of competitors 4. Threat of new entrants- the power of competitor to enter a market 5. Threat of substitute products or service- the power of customers to purchase alternatives
Porter’s Three Generic Strategies Model 1. Broad cost leadership (low cost and high audience) 2. Broad differentiation (High cost and high audience) 3. Focused cost leadership (low cost and low audience) 4. Focused differentiation strategy (high cost and low audience)
Value Chain and Value Chain Analysis -Value creation- once an organization chooses its strategy; it can use tools such as value chain to determine the success or failure of its chosen strategy.
-Business process- a standardized set of activities that accomplish a specific task, such as processing a customer’s order
-Value chain- views an organization as a series of processes, each of which adds value to the product or service for each customer. -Primary Value Activities: Receive and store raw material, make the product or service, deliver the product or service, market and sell the product or service, service after the sale. -Support Value Activities: firm infrastructure, human resource management, technology development land R&D, procurement.
Business Competitive Advantages Using IT Enablers
Information technologies can support many competitive strategies
Build customer-focused business, reengineer business processes, businesses become agile companies, create virtual companies, and build knowledge-creating companies
Strategic Decision Making – Chapter 2
Operational, Managerial and Strategic Support Systems
Operational: employees develop control and maintain core business activates required to run the day to day operation. Transaction processing system (TPS)- basic business system that serves the operational level and assists in making structured decisions. Online transaction processing (OLTP)- capturing of transaction and event information using technology to process, store, and update Source document-The original transaction record
Managerial: employees are continuously evaluation company operations to hone the firm’s ability to identify, adapt to, and leverage change. Online analytical processing (OLAP) - manipulation of information to create business intelligence in support of strategic decision making Decision support system (DSS)- models information to support managers and business professionals during the decision-making process
Strategic: managers develop overall business strategies, goals and objectives as part of the company’s strategic plan
Transaction Processing Systems
Basic business system that serves the operational level and assists in making structured decisions (payroll order or order entry system)
Decision Support Systems
Model information using online analytical processing (OLAP) to choose among different courses of action Enable high level managers to manipulate large amounts of data from different internal and external sources
Executive Information Systems
A specialized decision support system that supports senior level executives within the organization
Offering the following capabilities:
Consolidation: involves the aggregation of information and features simple roll-up to complex grouping of interrelated information
Drill-down: enables users to get details, and details
