14 Jun Research paper focusing on the company Home Depot – its competitive forces, its overall value chain, and how Information Technology/Information Systems is enhancing
Research paper focusing on the company Home Depot – its competitive forces, its overall value chain, and how Information Technology/Information Systems is enhancing its value chain to provide competitive advantage. Use section title (outline) as follows:
- Describe Porter's Five forces and value chains in general.
- Describe how Information Systems assists Home Depot in implementing their value chains for competitive advantage.
- Describe Home Depot and analyze it from the perspective of Porter's five forces, and value chain. Outline the value chain through a diagram. Make sure the company description provides details like its products, its history, etc. even if the company is widely known.
- Describe how Information Technology/Information Systems is enabling the selected company to enhance its value chain for competitive advantage. Provide instances of such impacts that are properly referenced.
12 Font, double space, 3 pages, include reference.
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Organizational Strategy, Information Systems, and Competitive Advantage
Chapter 3
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Q1: How Does Organizational Strategy Determine Information Systems Structure?
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
Strategy Determines Information Systems
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Q2: What Five Forces Determine Industry Structure?
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
Competitive Forces
• Competition from vendors who manufacture substitutes
• Competition from new competitors
• Competition from existing rivals
Bargaining Power Forces
• Bargaining power of suppliers
• Bargaining power of customers
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Porter’s Five Forces Model of Industry Structure
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Examples of Five Forces
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Five Forces at Falcon Security
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Q3: What Is Competitive Strategy?
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
Porter's Four Competitive Strategies
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Q4: How Does Competitive Strategy Determine Value Chain Structure?
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Linkages
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Task Descriptions for Primary Activities of the Value Chain
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Q5: How Do Value Chains Determine Business Processes and Information Systems?
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3-11C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
Q5: (cont’d)
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Q7: How Do Information Systems Provide Competitive Advantages?
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Principles of Competitive Advantage
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How Does an Actual Company Use IS to Create Competitive Advantages? (cont'd)
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• Maintains customer account data – IS collects information for ABC (adds value)
– IS saves customers time by automatically filling in part of form (adds value for customer)
• Package & information delivery system – IS helps customer to select delivery address and generate
shipping labels
– What value does shipper get?
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Two Roles for Information Systems Regarding Products
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Web Page to Select a Contact from the Customer’s Records
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ABC Web Page to Select a Contact from Customer’s Records
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Web Page to Specify Email Notification
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Web Page to Print Shipping Label
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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How Does The Knowledge in This Chapter Help You?
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
• Identify key points Falcon Security must address in deciding whether to expand its business beyond security services
• Develop guidance for yourself about relationship between competitive strategy and information systems requirements
• Summarize what you have learned from this example in a statement that you could make in a job interview
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Yikes! Bikes!
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• You are the operations manager for Yikes! Bikes, a manufacturer of high-end mountain bicycles.
• New owners plan to pursue lowest-cost vendor strategy by importing low-cost, lower quality bikes.
• New owners not being honest with employees about cutting jobs.
• Say you might be promoted to new general manager. Should you trust them?
Q: Are the owner’s actions illegal? Unethical?
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Guide: Your Personal Competitive Advantage
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
• Who will be your competitors when you seek a job after graduating from college?
• What will be your competitive advantage in the job market?
• What can you do before you graduate to create a competitive advantage for your self?
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Using the Guide: Your Personal Competitive Advantage (cont'd)
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
How do these elements of competitive advantage apply to you personally?
• Switching costs? • Differentiating products? • Creating barriers? • Establishing alliances? • Reducing costs, increasing revenues?
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Case Study 3: The Amazon of Innovation
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Case Study 1: The Amazon of Innovation (cont'd)
Three categories of Amazon’s business lines:
1. Online retailing – Own inventory – Associates program – Consignment
2. Order fulfillment
3. Cloud services
C o p y r i g h t © 2 0 1 5 P e a r s o n E d u c a t i o n , I n c . C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Costs for Fulfillment by Amazon by Type and Size of the Goods to Be Processed.
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
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Impact of FBA
C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .
• Amazon provides customer service for order processing (handling returns, fixing erroneously packed orders, answering customer order queries, etc.).
• Using Web-standard technology, FBA customers’ order and payment data directly linked to Amazon’s information systems.
• Enables companies to outsource order fulfillment to Amazon, thus avoiding the cost of developing their own processes, facilities, and information systems for this purpose.
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