... What concepts in the chapter are illustrated in this case? The concepts illustrated in this case are value chain model and competitive forces model. Business value chain model. -Views firm as series of activities that add value to products or services. -Highlights activities where competitive strategies can best be applied. -At each stage, determine how information systems can improve operational efficiency and improve customer and supplier intimacy. -Utilize benchmarking, industry best practices. Michael Porter’s competitive forces model -Provides general view of firm, its competitors and environment. -Five competitive forces shape fate of firm -Traditional competitors -New Market Entrants -Substitute products and services -Customers -Suppliers 2. Analyze Amazon and Walmart.com using the value chain and competitive forces models. The competitive forces models Traditional competitor: Amazon vs Wal-Mart competition in marketplace Low-cost leader: Amazon and Wal-Mart provide lowest price to customer and keep competing in lowest price New market entrants: both are the biggest company in E-commerce Substitute Products and Services: the competition in discount of two company is prominent Customers: no mention Suppliers: no mention The value chain model: Walmart: can lose money selling a hot product at extremely low margins and expect...
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...I have been looking at some of the work of Rob Grant to analyse resources and capabilities, mainly examining work in and around Resource Based Theory of Competitive Advantage and implications for Strategy Formulation. So hopefully have covered some differing aspects to use for Amazon. Strategic Planning Processes. I believe an effect method for Amazon to undertake such an analysis would be to examine: • Value Chain • Resources Based View • Financial Analysis Use of a Value Chain Analysis for Amazon Amazon have developed a value chain analysis of its’ own to internal asses how it can operationally best add value and maintain a competitive advantage. They have used the value chain model from Michael Porter's book, "Competitive Advantage: Creating and Sustaining Superior Performance." [pic](Source: Bua Consulting) Example of a Strategic Plan Model - Amazon Internal Analysis, Strategic Planning Tools, Strategic Planning Models Primary Activities and Support Activities Primary activities are those needed to produce a product or services for the end customers. These activities typically include: • Inbound Logistics: receiving goods from suppliers, and storing and moving those good • Operations: Manufacturing or assembling the product • Outbound Logistics: Sending the goods to wholesalers, retailers or directly to the end customer • Marketing and Sales: Marketing involves understanding customer needs, communicating those needs...
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...small increments based on price policy algorithms that are simply not possible in traditional retailing. An other example might be Lowestfare.com which is a leading provider of discount travel products and services for the leisure travel market or Sunelec.com has the lowest prices in the industry Solar & Wind Energy Distributors, Dealers, & Wholesalers. 2) Defend e-tailing This is a strategic approach that traditional companies can use in response to ‘attack e-tailing’. It involves differentiation based on other aspects than price, for example differentiation in quality or using brand name etc. Also reasons why the lowest price may not always result in the sale are: • Ease of use of site and placing orders (e.g. Amazon One-Click makes placing an order with Amazon much easier than using a...
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...Barnes & Noble Case Study 1- A. Use the Value chain Model and competitive force model the impact of the internet on book publishers and retail stores such as B&N. Value Chain Porters’ Competitive Forces For the book selling industry, the information technology which the e-book arose from has affected the five forces in the Porter’s five forces’ model. * The introduction of substitute is strong * The customer has more information available that strengthen the customer force. * The competition is high as all other companies started to use the technology available to achieve competitive advantage. * The barriers to enter the industry have been weakened Book Publisher: * Reduce the printed books * Increase the cost of the investing in technology (support Activity in the value chain) in order to produce electronic books and enhance the technology associated with it. * Change the pricing strategy. * The new market entrants of electronic books (i.e Amazon, Apple..etc) caused a decrease in the demand for the physical books. Book retail Stores (B&N): * Reduction in the demand for the physical books * Reduce the cost of shipment, distribution..ect. (Outbound logistics) * Reduce the space using in the bookstores. * Adopt new technologies in promoting the sales of books. (Invest in technology to improve value chain) * Increase the cost of technology investments. * Adopt new strategies in marketing...
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...Porter’s value chain model (Oliveira and Gimeno, 2014, pp. 68-69) will be used to give a brief introduction of the main activities which would add value to the products of Amazon, some analysis of the coherence between business model and these activities will also be given. For the analysis of value chain, support activities are combined with primary activities since both of them are related to add value on producing products or rendering services for customers, and you will find out that most of the focus is on reducing costs and Customer Service. In terms of inbound logistics, to offer lower price products to customers, combined with the procurement process, Amazon purchased some of the stocks directly from publishers rather than from distributors to get the best bargain (TV Khmer Bayon, 2011); Also, by utilizing accurate forecasting system (Willden, 2015) , Amazon has the capability to gather sufficient information from customer to avoid the returns to suppliers, which reduce the costs as well. Both of the actions are in consistent with selling products at cheaper price. To get the quicker delivery for customers, which in according with improving customer service, Amazon started keeping the frequently-sales products in stock even on holidays and Amazon has partnered with the U.S. Postal Service to leverage underutilized weekend capacity. As for operations, Bezos decided to outsource some of the inventory management in 2001 in order to cut operational cost so that Amazon could...
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...class, we have learned a lot of things about information technology. IT is the use of computers to collect, store and retrieve data. Professor use a lot of examples to instruct the relationship between information technology and people. As we know, companies use information technology to increase their profits. The example of Bestbuy attracts me a lot. As we can see, people always go to Bestbuy to try the products and purchased the item on Amazon.com as Amazon offers a cheaper price than Bestbuy. Then we talk about the three applications of IT, they are supply chain management(SCM), customer relationship management(CRM) and enterprise resource planning(ERP). And the five forces(entrants, competitors, substitution, suppliers, buyers) are important for a company. We have also learned the generic strategy in the class, Companies should choose a strategy to be mainly use when they enter a new market. Also, we have learned the value system and value chain. Value system is the personal and cultural values used for ethical. For the value chain, we learned how to use support actions in different situation. In summary, I have a briefly understand of information technology after the class. The use of examples let me understood the notion clearly and specifically. II. Material related to the Case Netflix is an online subscription-based DVD rental company founded in 1997. After first class, I think the 5 forces analysis(entrants, competitors, substitution, suppliers, buyers) can be used...
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...Introduction • Globalisation • Competitive advantage of nations Additional readings: Davies, H. & Ellis, P., 2000. Porter’s competitive advantage of nations: time for the final judgement? Journal of management studies, 37(8), pp.1189–1214. Dunning, J.H., 1993. Internationalizing Porter’s diamond. MIR: Management International Review, pp.7–15. Porter, M., 1990. The competitive advantage of nations. Harvard Business Review, 68(2), pp.73–93. 2 31.03.2016 Thursday Global value chain • Outsourcing vs offshoring • Global value chain • offshoring • outsourcing • Resource-based view • Transaction costs • Intellectual property infringement Case: Ecco – Global value chain management 1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-a-vis the competitors) to take advantage of changes in the industry. 2. Analyze ECCO's global value chain. How well does this configuration match the drivers in the industry? 3. ECCO has a fully integrated vertical value chain? What are the pros and cons of this strategy? That economic and strategic factors should be analyzed to answer this question?...
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...[pic] |Syllabus Axia College/School of Business XBIS/219 Business Information Systems | |Copyright © 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course provides an overview of Business Information Systems. This includes a broad foundation for both technical and nontechnical business professionals. Special emphasis is placed on how information is used by different types of businesses across different industries. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. The instructor policies are VERY important. The late policies, participation and discussion requirements, and other important information to ensure your best experience in this class are detailed in that document. Make sure you read this document in full immediately to help avoide missed requirements and missed points. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. PLEASE NOTE: Many of the assignments in this class have been customized, which means...
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...Introduction Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. In its initial years, Flipkart focused on online sales of books, but it later expanded to electronic goods and a variety of other products. Flipkart offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, and the major of all Cash on Delivery.[3] The cash-on-delivery model adopted by Flipkart has proven to be of great significance since credit card and net banking penetration is very low in India. History Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com before quitting and founding their own company. Initially they used word of mouth marketing to popularise their company. A few months later, the company sold its first book on flipkart.com—John Woods' Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Flipkart claims to have had at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers, computer accessories and peripherals, and in 2011, pens & stationery, other electronic items such as home...
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...HW1 study guide (will be included in quiz1) 1. As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? a. low-cost leadership b. focus on market niche c. customer and supplier intimacy d. product differentiation Answer: D 2. According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. a. microeconomic b. macroeconomic c. sociotechnical d. behavioral Answer: A 3. All of the following are major features of organizations that impact the use of information systems EXCEPT for a. business processes. b. environments. c. goals. d. agency costs. Answer: D 4. Business processes are collections of a. informal practices and behaviors. b. formalized and documented practices. c. routines. d. rights and privileges. Answer: C 5. Mintzberg"s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) a. entrepreneurial structure. b. divisionalized bureaucracy. c. professional bureaucracy. d. adhocracy. Answer: C 6. A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy....
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...1. Explain the terms of organizational strategy and strategic management? Ans; Strategic management is a way in which strategists set the objectives and proceed about attaining them .It deals with making implementing decision about future direction of in an organization. It helps us to identify the direction in which an organization is moving. It is continuous process that evaluates control the business and industries in which organization is involved. 2. Organization strategy is the strategy that concerned with your business creating a good value in eyes of your customers and making a strong position in the market. It describes the long term outlook for business and defining new technology and economic conditions. It can also be defined as knowledge of the goals, the uncertainty of event and need to take into consideration or actual behavior of others. 2. Describe the types of strategy in terms of organizational planning and development? Ans: : The types of strategy in terms of organizational planning development are following: * Corporate strategy: Corporate strategy is term which is used to combine or acquire with some other company. * Operational strategy: It is the term used by the area manager’s to give some instructions to the managers to sort out the problems within the organization. * Business strategy: it is the term used to enlarge our business ion the market by introducing new products and by god management skills. * Price...
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...Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself. While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector. FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and...
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...rain_c02_034-069hr.qxd 28-09-2009 13:18 Page 34 CHAPTER 2 1. Describe the components of computer-based information systems. 2. Describe the various types of information systems by breadth of support. 3. Identify the major information systems that support each organizational level. 4. Describe strategic information systems (SISs) and explain their advantages. 5. Describe Porter’s competitive forces model and his value chain model and explain how IT helps companies improve their competitive positions. 6. Describe five strategies that companies can use to achieve competitive advantage in their industries. 7. Describe how information resources are managed and discuss the roles of the information systems department and the end users. Information Systems: Concepts and Management LEARNING OBJECTIVES rain_c02_034-069hr.qxd 28-09-2009 13:18 Page 35 WEB RESOURCES Student Web site www.wiley.com/college/rainer • Web quizzes • Lecture slides in PowerPoint • Author podcasts • Interactive Case: Ruby’s Club assignments WileyPLUS • All of the above and... • E-book • Manager Videos • Vocabulary flash cards • Pre- and post-lecture quizzes • Microsoft Office 2007 lab manual and projects • How-to animations for Microsoft Office • Additional cases CHAPTER OUTLINE 2.1 Types of Information Systems 2.2 Competitive Advantage and Strategic Information Systems 2.3 Why Are Information Systems Important to Organizations and Society? 2.4 Managing Information Resources ...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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...Value Chain = Supply Chain + Demand Chain: New Approaches to Creating and Capturing Sustainable Value Fanny Thublier(1), Terry Hanby (2) and Yongjiang Shi (2) Arts et Métiers ParisTech 75013 Paris, France (2) Institute for Manufacturing University of Cambridge, Cambridge, CB3 0FS, UK (1) Abstract The purpose of this research paper is to develop a Value Chain conceptual model based on a combined Supply and Demand approach. Drawing primarily from the literature on Supply Chain, Demand Chain and Value Chain, modern definitions for these concepts are developed. Based on these findings, a new equation in the “value” world is introduced: “Value Chain = Supply Chain + Demand Chain”. The resultant model recognizes the growing importance of the end-consumer in the design and management of these chains and considers both the effectiveness and efficiency relationship in the Value Chain. In addition, different value perspectives for the Value Chain are suggested with particular focus on sustainable value creation and capture issues. It is anticipated that this model will be developed further in the specific context of the luxury market using case studies to develop and refine the proposed Value Chain model. Keywords: Value Chain, Supply Chain, Demand Chain, Consumer, Customer. Introduction While external forces such as economic, ecological, technological and regulatory developments are increasingly altering the global landscape, new industry trends now affect the value...
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