...citation and referencing. Each contribution to, and quotation in, this essay from the works of other people has been attributed, and has been cited and referenced. 3. This essay is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work Signature …………………….. Date ….../….../…...… Full name of student: A Table of contents 1. Introduction………………………………………………………………………1 2. Resources: what makes them strategic?.....................................................1 1. Characteristics of Strategic Resources………………………..…………2 3. Strategic value of Information Technology………………………….………..2 4. The evolution of the IT function in business………………………………...4 5. Using IT to gain Sustainable Competitive advantage………...……………7 6. Conclusion……………………………………………………………………….8 7. Bibliography………….………………………………………………………….9 8. Appendices …………………………………………………………….………14 1. Critique of Sources……………………………………………...……….14 Abstract The IT function in business has changed and evolved throughout the years. IT has now become increasingly ubiquitous and accessible to companies. The fact that it is accessible to more companies, has led to the belief that IT is no...
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...the device? 2. Compare the capabilities of the Kindle to the iPad. Which is a better device for reading books? Explain your answer. 3. Would you like to use an iPad or Kindle for the books you use in your college courses or read for pleasure instead of traditional print publications? Why or why not? II Porter’s competitive forces model helps companies develop competitive strategies using information systems. In this context answer the following questions: 1. Define Porter’s competitive forces model and explain how it works. 2. Describe what the competitive forces model explains about competitive advantage. 3. List and describe four competitive strategies enabled by information systems that firms can pursue. 4. Describe how information systems can support each of these competitive strategies and give examples. 5. Explain why aligning IT with business objectives is essential for strategic use of systems. III Discussion Questions 1. It has been said that there is no such thing as a sustainable competitive advantage. Do you agree? Why or why not? 2. It has been said that the advantage that leading-edge retailers such as Dell and Wal-Mart have over their competition isn’t technology; it’s their management. Do you agree? Why or why not? 3. What are some of the issues to consider in determining whether the Internet would provide your business with a...
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...the device? 2. Compare the capabilities of the Kindle to the iPad. Which is a better device for reading books? Explain your answer. 3. Would you like to use an iPad or Kindle for the books you use in your college courses or read for pleasure instead of traditional print publications? Why or why not? II Porter’s competitive forces model helps companies develop competitive strategies using information systems. In this context answer the following questions: 1. Define Porter’s competitive forces model and explain how it works. 2. Describe what the competitive forces model explains about competitive advantage. 3. List and describe four competitive strategies enabled by information systems that firms can pursue. 4. Describe how information systems can support each of these competitive strategies and give examples. 5. Explain why aligning IT with business objectives is essential for strategic use of systems. III Discussion Questions 1. It has been said that there is no such thing as a sustainable competitive advantage. Do you agree? Why or why not? 2. It has been said that the advantage that leading-edge retailers such as Dell and Wal-Mart have over their competition isn’t technology; it’s their management. Do you agree? Why or why not? 3. What are some of the issues to consider in determining whether the Internet would provide your business with a...
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...organisations seek to develop sustainable competitive advantage. In broad terms, two distinct approaches have emerged from the debate about this central issue within strategy content: the positioning approach and the resource-based approach (or more accurately, approaches). Much of the debate has concentrated upon two key questions: • Is competitive advantage achieved by concentrating on either low cost or differentiation or should a strategy seek to exploit both low cost and differentiation? • Does an organisation develop strategy to respond to or shape the environment in which it exists – is strategy outside-in or inside-out? As the primary purpose of the tools of strategic analysis is to help organisations to develop and implement successful strategies, then an understanding of the underlying context in which these models and frameworks can be applied is an important requirement. By exploring the development of these competing approaches to competitive advantage and the debate between them, this Session sets out to provide this contextual understanding. Your Objectives By the end of this session you should be able to: • Outline how the tools and frameworks of strategic analysis are utilised by the positioning and resource-based approaches to create sustainable competitive advantage. • Understand the debate between those advocating positioning or resource-based approaches to the search for sustainable competitive advantage....
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...industry attractiveness and to what extent to competitive advantage? WalMart´s performance is not attributable to industry attractiveness due to the high internal rivalry within the retail sector. Such rivalry results in margin compression and lower growth for WalMart. By using Porter's 5 forces, we see that supplier power for WalMart is weak because many of WalMart's suppliers are consumer product companies. These companies are commodity companies since their product has little differentiation. As a result, they have little bargaining power against retailers with large market share such as WalMart. Buyer power for the consumer is average because there are a large amount of substitutes. Buyers can easily go to another retailer such as Target or Kmart for their shopping needs. Internal rivalry is high as the market is very competitive. Many retailers are forced to lower prices in order to compete. As a result, some retailers are forced to file for bankruptcy. Substitutes for retailers such as WalMart are moderate. This is because there are many alternatives such as local grocery stores, department stores, and local mom and pop stores. Barriers to entry for WalMart are high due to the high fixed costs associated with running retail stores as well as the economies of scale WalMart has. Retail stores require substantial ...
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...strategies encompass the set of approaches that the company will use to achieve its objectives’ (Jobber and Lancaster, 2006 pg 49) A well defined strategy should therefore integrate decisions about; scope of the business, objectives, resource allocation, developing sustainable differential advantage and synergy. The importance of strategy in the achievement of business goals cannot therefore be over emphasized judging from the above features. Split into corporate and competitive strategies, the former determines the scale and scope of the business while the later determines the sustainability of the company in the ever dynamic and competitive business environment. Whether inward out (resource based) or outward in (market based), competitive strategy is cardinal to the continued existence if the firm. Since successful strategies are those which adapt firms to the opportunities and threats in their markets/environments and which develop their internal capabilities, it means that in order to remain relevant, firms must adopt strategies suitable and consistent with the market changes, its development and the environment at large, either responsively or proactively. The business environment has by no means been stable, with each era presenting its own set of problems and need for adaptability. Strategic approaches and fits in the 1800s, 1900s,...
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...apple computer 2012 Apple Computer 2012 1. What, historically, have been Apple’s major competitive advantages? Early on, although not always profitable, Apple Computer was known for their unique products. A quote worth noting from an analyst, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs.” This is truer knowing what Steve Jobs strives to achieve with the company as well as the employees. Job was especially fanatic about industrial design, simplicity, and product elegance. The employees love working for Jobs, however it is very difficult. The employees connect with the passion that Jobs has in this work ethic. “My passion has been to build an enduring company where people were motivated to make great products. Everything else was secondary.” Overall, a strong leader in Jobs and Cook has been an advantage of Apple as well as their well-groomed employees who are handpicked by Jobs. Another historical advantage that Apple has is their use of vertical integration. Since they make all the aspects to their products, doing so adds great value to the company and therefore provides a strategic and competitive advantage. 2. Analyze the structure of the personal computer industry using Porter’s Five Forces. Are these dynamics favorable or problematic for Apple? Bargaining power of buyers In terms of technology: PCs, smartphones, and tablets, the product lines of different companies need to be unique. Buyers have...
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...I have prepared a strategic analysis to assess the competitive position of the world's leading nutrition, health and wellness company, Nestle. A company with 140 years of experience, founded in 1866 and started out with a product for kids, a combination of cow's milk, flour and sugar. It soon started diversifying its products with the launch of all sorts of chocolate, milk and coffee products as well as drink/juices and tapping into the wellness area with the acquisition of l'oreal. A company that has been in continues mutation, adapting to the necessity of difficult times and being quicker than others to launch new products on the market. With the boom or organic food industries even Nestle jumped on the bandwagon and started acquiring smaller organic firms and releasing a huge array of so called healthy foods. As you are well aware their brand is one of the most recognized in the world because they are creating value for different communities, for their partners and obviously for their consumers. Or as they call it, they are creating shared value. Below a graph taken from their websites that enlists their strategy: . Industry analysis: Demographic Trends Cultural Influences *Ageing population that can afford higher costs *Increased consumption of healthier food and is more aware of health issues. *More concern about the environment and *Younger population more prone to diversify their the supply chain diets and meals and switch to healthier food Technological...
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...1. Why has Disney been successful for so long? (reference to Industry Analysis, Disney's chosen strategy, Disney's sources of Competitive Advantage and comment on sustainability of advantage) Disney has remained successful for myriad reasons, not the least of those is its ability to constantly realign its strategy to the trends of the market. Disney is a company that survives by continually realizing the depth of a new idea. The company harvests every available profit from its ventures before acquiring and moving to newer and more forward thinking endeavors. It uses its strength of foresight to predict up and coming industry trends and its incredible scale and wealth of resources to dominate the market. Fundamental understanding of corporate strategy has allowed Disney to vertically integrate during its early days in the film business through the creation of its own distribution network. This forward integration move proved to be an important facet in the success of the Disney strategy, as it allowed them to save at least one-third of the gross revenue for each film. In addition, Disney seemed to have a complete understanding of what it means to have corporate synergy. The company utilized its corporate strategy to successfully diversify, creating a set of complementing and cross-promoting business units that leveraged the already strong Disney brand to maximize shareholder value. A strong corporate culture offers support in uniting the effort brought together by the different...
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...introduction: Strategy –definition, scope and importance: A strategy is a plan of action designed to achieve a vision. It can also be said that, strategy is a pattern in action over time of getting from here (present position) to there9 desired future position) Everybody is concerned with some strategy as it involves a plan “how and means of getting from here to there”. Strategy the word derives from the Greek word for generalship in army. It is the art and science of planning and marshalling resources for their most efficient and effective use. So, strategy is a method or plan to bring about a desired future prospect to adapt successfully. Three main areas of strategy: Every organization proceeds with some strategies. Corporate strategy is the linking process between the management of the organization’s internal resources and its external relationship with its customers, suppliers, competitors and so on. Every organization manages its resources in three main areas: 1) Resources strategy 2) Environment strategy 3) Adding value Resource strategy includes it resources such as – human skills, investment capital and others. Organization has to develop strategies to exploit those resources in a good pattern. Sometimes innovative ability can be a resource that is necessary to develop continuously. For example – Apple has huge investment in R&D sector. They have exploited their investment in that sector that requires comprehensive strategy to follow. So,...
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...consumers deeply. This is not a short time to achieve the goal, managers need to show patience, initiative, sensitivity. The first method is to employ local people, the locals understand local consumption habits, festivals, religion, social system better than foreigners. So it is something we all take for granted: the locals can manage locals easier or build local ties better. In addition: Cultural exchange is a two-way process, after local employees working with foreign staffs, the locals can give suggestion to help foreign staffs to adapt faster. For example: There are two telecommunications companies want to expand business in U.S.. One is from India,another is from China.Indian company's U.S. division has been fully localized, senior staffs are almost all Americans, it has been deemed to come from behind global competitors after U.S. local telecommunications giant's did a strategic analysis. On the contrary, Chinese state-owned enterprise, all the senior staffs are sent from China. In addition to considering the Chinese market, U.S. telecom operators never consider the Chinese counterparts as a global competitor.[i] Therefore it is necessary for every multinational corporations to provide an...
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...Table of Contents .................................................................................................................................... 2 Introduction............................................................................................................................................. 3 Theory and Analysis................................................................................................................................. 4 Research question 1: The structure of the PC industry....................................................................... 4 Research Question 2: The difficulty of Apple in the PC industry over time ........................................ 7 Research Question 3: Sustainability of competitive advantage for Apple in the PC business .......... 10 Strategic advice ..................................................................................................................................... 12 Conclusion and Reflection ..................................................................................................................... 12 References ............................................................................................................................................. 13 2 Introduction In 1976 Steve Jobs and Steve Wozniak founded Apple Computer Inc. together with a group of 20 other people and started out in Steve Jobs garage. Apple started making computer circuit boards and followed that with an easy...
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...organizations of all sizes and sectors across the world’ (2009, David Mankin), Globalization is the characteristic of New Economy, it provide a broader opportunities to new economy development. As an organization, employers must consider a strategic process to compete with other competitors and survive under globalization underground. Organisation need ever-improving performance to survive and prosper in today’s competitive world: individual and organisational performance improvements are the keys to competitive advantages. (Raymond J.Stone 2008). A formal planning procedure and a right position in the competitive arena have been seen as the main strategic concerns of the top management. (Mikko Luoma, 2000). With the time passed from the early days of strategic management, there are some evolution has taken place in strategy (Mikko Luoma, 2000). As David Mankin mentioned in his book ‘strategy is often described as a process involving a series of steps or phases involving: analysis and planning, implementation; review. ‘(David Mankin 2009). As a central source of competitive advantage, HRD was defined as a set of intentional activities that increase a person’s skill, abilities, and/or knowledge, and direct them for a company’s benefit.(Luoma, 2000). A strategic approach to...
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...into a competitive advantage. Is the basis for Land Rover’s competitive advantage truly accurate or are they using a clever marketing scheme to target socially responsible consumers? Summary In Land Rover’s Sustainability Report 2009/2010 it states “We commit to continuously improving the environmental performance of our business and products by reducing emissions, conserving natural resources, and optimizing the use of sustainable energy and materials. This is underpinned by our investment in research into cutting-edge environmental innovation” (Land Rover, 2011). Land Rover is using the hot new green marketing concept to highlight their social responsibility and target the consumer who is eco conscience. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. While it may seem that to advertise one’s company as “green” it must include a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Background Founded in 1948, Land Rover was designed with the tough working, never ending job of farming in extreme places in mind. Since its early days and with countless changes in designs and technology, Land Rover is still the epitome of toughness and forward thinking design. Now Land Rover is also addressing environmental concerns with initiatives such as e-Terrain Technologies, Sustainable Manufacturing...
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...------------------------------------------------- GROUP # 4 Sonny Nguyen || Brittany Krammes Larisa Zenokhova || Bryan Berduo Table of Contents Page # SECTION I – INTRODUCTION3 SECTION II – BUSINESS LEVEL STRATEGY3 SECTION III – VRIO FRAMEWORK OF RESOURCES & CAPABILITIES4 SECTION IV – VALUE CHAIN ANALYSIS6 SECTION V- INTERNAL WEAKNESSES7 SECTION VI –STRATEGIC ACTION RECOMMENDATION 7 A. REFERENCES…………………………………………………………………………………………………………….8 B. EXHIBITS………………………………………………………………………………………………………..……….11 SECTION I – INTRODUCTION For this analysis, we chose Apple Inc. because of its impact on the smartphone industry in the United States. First, the report will identify the business level strategy that the company has pursued and key factors that attribute to its success. Next, the report will use the VRIO framework to analyze Apple Inc.’s tangible and intangible resources, and capabilities. Then, a value chain analysis is provided to evaluate how Apple Inc. creates value for their customers, followed by a brief explanation of three internal weaknesses. Finally, based on what our group knows about the mobile industry in the United States and Apple Inc., we recommended strategic actions the company should take in order to maintain its position in the industry. SECTION II-BUSINESS LEVEL STRATEGY Apple Inc.’s existing business-level strategy within the U.S. branded mobile phone manufacturing industry is one that focuses on differentiation. According to...
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