OrganizationalStrategyandCompetitiveAdvantage.docx

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Organizational Strategy and Competitive Advantage BSAD 141 Dave Novak BDIS: 1.2 (13-26) Lecture Outline Business Strategy Competitive Advantage Goals versus Objectives Porter’s 5 Forces Model Value Chains How do information systems fit in? Business Strategy What is a “business strategy”? Business Strategy Is it important for employees to know the organizational “business strategy”? Business Strategy Difference between goals and objectives Examples of Goals Developing new products or services Entering new markets Increasing customer loyalty Attracting new customers Increasing sales Examples of Objectives First, identify a particular goal For example, increasing customer loyalty Second, identify measurable, focused indicators of customer loyalty that can be used to determine whether you are actually meeting your goal Examples? Competitive Advantage A feature of a product or service that customers value very highly or more highly than they do for similar features provided by their competitors Could be a unique product or service but doesn’t have to be unique How do you determine “better”? Identifying Competitive Advantages Competitive intelligence –The process of gathering information about the competitive environment to improve the company’s ability to succeed First-mover advantage – Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage Competitive Strategy Competitive Strategy Source: Kroenke, Experiencing MIS, 2008 Porter’s 5 Forces Model A framework for analyzing the competitive forces in the environment in which an organization operates Evaluate the attractiveness in terms of entering into a particular industry Assess potential for profit Porter’s 5 Forces Model 1) Buyer/Customer Power The ability of buyers to influence the price of an item High when customers have ability/power to (lower) prices Switching cost – Manipulating costs that make customers reluctant to switch to another product

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