COMP4116 Information Systems Management PDF

COMP4116 Information Systems Management Week 3, Part 1 Develop Competitive Strategies Using IS – Five Forces Model Reference: G. R. Jones, & J. M. George, Essentials of Contemporary Management ISE, 10th Edition. McGraw-Hill, 2023. Kenneth C. Laudon and Jane P. Laudon. Management Information Systems...

COMP4116 Information Systems Management Week 3, Part 1 Develop Competitive Strategies Using IS – Five Forces Model Reference: G. R. Jones, & J. M. George, Essentials of Contemporary Management ISE, 10th Edition. McGraw-Hill, 2023. Kenneth C. Laudon and Jane P. Laudon. Management Information Systems: Managing the Digital Firm, 17th Edition. Pearson, 2022 Five Forces Model Porter’s Competitive Forces Model An analytical method used to determine state of competition at an industry or business level Five most important competitive forces, or potential threats, in the environment 3 Five Forces Model Buyers Suppliers Rivalry of existing competitors Substitute Threat of Entry products 4 Five Forces Model Supplier ▪ Affected by number and size of suppliers ▪ Supplier’s product is unique? Buyer ▪ Affected by number and size of buyers ▪ Your product is unique? ▪ Reduce buyer power by switching costs and loyalty programs Threat of entry ▪ How easy for a company to enter an industry ▪ Protect by law? 5 Five Forces Model Substitute products ▪ Output of one industry may be a substitute for the output of another industry ▪ Number of substitutes, switching cost to new product Rivalry of existing competitors ▪ Companies compete against one another for customers ▪ Differentiated product? Switching cost? 6 Five Forces Model Find out the drivers of competition Develop strategies to achieve a more favorable position Develop blocking actions to prevent Five Force players achieving favorable position 7