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Competitive Advantage with Information Technology

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Topic 2 Competitive Advantage with Information Technology * * * * * * Achieving Competitive Advantage with IT Competitive Advantage Off-line (store) Retail Online ... – PowerPoint PPT presentation

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Title: Competitive Advantage with Information Technology


1
Topic 2
Competitive Advantage with Information Technology
2
Achieving Competitive Advantage with IT
  • Off-line (store) Retail
  • Online Retail
  • Automotive
  • Online music
  • Music players
  • Web search
  • Personal computers
  • Software

Competitive Advantage
3
Hello!?
1990 DJI 5000 MSFT 5000
2008 DJI MSFT
Market Capitalization, February 2007
Aug 2010
26
300
190

157
23
144
208
30
218
Lockheed Martin 43,000,000,000
Exxon Mobil 438,000,000,000
Walmart 196,000,000,000
General Motors 15,000,000,000
IBM 144,000,000,000
Dell 43,000,000,000
Google 157,000,000,000
Microsoft 265,000,000,000
eBay 38,000,000,000
Apple 107,000,000,000
4
Hello!?
5
Competitiveness
How effectively an organization meets the wants
and needs of customers relative to others that
offer similar goods or services.
6
Competitiveness
Our Philosophy PFSweb is an outsourcing solutions
design firm with an extensive offering of
world-class logistics, fulfillment, customer care
and technology infrastructure that can be
leveraged to create unique, client-specific
business solutions. Our philosophy is not to fit
your business model into our pre-existing
infrastructure, but rather to develop our
infrastructure around your unique needs. We are
flexible, scalable, and adaptable so we can keep
pace with your ever-changing needs, whether you
are adding new sales channels, marketing
initiatives, vendor managed inventory (VMI)
programs or special projects. We realize that no
two clients face the exact same challenges, and
for that reason, we are always extending our
technology and operations capabilities based
directly on client needs. Our philosophy is that
there is absolutely no favorable argument for you
to consider outsourcing with PFSweb unless we can
execute at a greater performance level than what
you could achieve in-house or through an
alternative partner.
7
Competitiveness
8
Productivity
Measures how well an organization is utilizing
its resources.
9
Porters Competitive Advantage Model
New Entrants
Buyer Power
Supplier Power
Rivalry Among Competitors
Customers
Suppliers
Substitutes
10
Porters Competitive Advantage Model
  • Impact of Internet on Competitive Forces
  • Reduces barriers to entry
  • Enables new substitute products and services
  • Shifts bargaining power to customer
  • Raises firms bargaining power over suppliers
  • Suppliers benefit from reduced barriers to entry
    and from elimination of intermediaries
  • Widens geographic market, increases number of
    competitors, reduces differentiation among
    competitors

11
Porters Competitive Advantage Model
New Entrants
Buyer Power
Supplier Power
Rivalry Among Competitors
Customers
Suppliers
Substitutes
12
Porters Competitive Advantage Model
Buyer Power
Rivalry Among Competitors
Customers
13
Porters Competitive Advantage Model
New Entrants
Rivalry Among Competitors
14
Porters Competitive Advantage Model
Rivalry Among Competitors
Substitutes
15
Porters Competitive Advantage Model
Supplier Power
Rivalry Among Competitors
Suppliers
16
Porters Competitive Advantage Model
17
IT Systems can help in the areas of . . .
  • Low-cost leadership
  • Product differentiation
  • Customer and supplier intimacy
  • Focus on market niches
  • Increase your market reach

18
The Value Chain Model
19
Basic Value Chain for Federal Express
Human Resources Build and Improve Distribution
Centers Support Aircraft and Trucks Order Supplies
Support Activities
Service Customers Bill Collect
Collect Packages
Sort Packages
Ship Packages
Core Activities
(Hub)
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