A Brief Note On Porters Competitive Forces Model Essay

1252 Words Sep 3rd, 2016 6 Pages
2. Porters competitive forces model has four generic strategies each of which is enabled by using information technology and systems low cost leadership, product differentiation, focus on market niche, and strengthening customers and supplier intimacy. Utilizing Porters models and information systems allows companies to be competitive because they are able to see other companies new products within the same markets, and allows suppliers to better serve those businesses more effectively and efficiently.
- Porters model gives a good view of the four competitive forces, they include: new market entrants, suppliers, substitute products, and customers. These component show the strategic position of the firm.
- It basically explains competitive advantage to be what every business strives for. If a business were to have each of the forces they would of course have the competitive advantage over the competition.
- Strategies that a business that want to keep the advantage should be a business that can keep their overhead low with efficient suppliers like Walmart, have different products coming out regularly like apple, have a unique niche just like Hilton head and have loyal customers like amazon. This would be an unstoppable business that has utilized their IT systems to their greatest potential.
- IT systems can improve each of the strategies for example, 1. Low-cost leadership- the leader in this strategy is Wal-Mart they have utilized their inventory replenishment system,…

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