Essay on Value Chain and Competitive Forces

1245 Words Dec 13th, 2012 5 Pages
Value Chain and Competitive Forces:
Effects of Information Technology

Module 2 Case

John Dow

ITM524: Fundamentals of Information Technology Management

Dr. Somebody Somebody

February 4, 2012

Introduction Businesses are established with the sole reason to provide a product or service to a customer with the intend to make a profit. The amount of time, effort, and resources spend should generate a profit. Then, the profit depends “on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay of the products exceeds the cost of the activities in the value chain” (NetMBA.com). Ideally, these products and/or
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This energy savings called Ecoimagination sold solutions within GE and out of GE; resulting in the company’s saving of $100 million and cut of greenhouse-gas effect by 41%. As the proof of concept was accepted and implemented; GE was invested $4 billion and reaped sales of $17 billion in 2008 (Fromartz, S. (2009).

Mini Case # 5 – Wal-Mart Creative new ways of supplying products to the customer has enabled Wal-Mart to ‘green the supply chain’, thereby boosting savings and increase profits to enable enduring sustainability. Wal-Mart identified its criteria down into the supply chain on a three stage path (Fromartz, S. (2009). It sourced information to more than 100,000 supplies about their energy and greenhouse-gas emissions. Then, measured their products throughout their life-cycle and finally made it transparent to the customer. It’s focus on a greener product reaped rewards in a more efficient production, less waste and lower emissions. This effort enabled cost-savings to such an extensive degree that Wal-Mart is able to pass on to the customer—enabling the superstore to maintain a competitive edge…a strategy for sustainability.

Conclusions In conclusion, innovative approaches give companies an edge over competitive forces within the business value chain. Information technology is a key enabler

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