Exam 1 Study Guide
ITM 309 Fall, 2013
Exam One Topics: Review Outline
September 30, 2013
Information Systems in Business – Chapter 1
Apple Case and Class Discussion
1. What might have happened to Apple if its top executives had not supported investment in iPods or iPhones or iPads?
*It would have fallen due to the Porter’s Five Forces
2. Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power.
*Buy power is low because iPod is the dominant player in portable music
*Supplier power is average because there are a fair amount of suppliers
3. Which of Porter’s Five Forces did Apple address through its introduction of the iPhone?
*Low buyer power – few substitutes. High supplier power
4. Which of the Generic Strategies is Apple following?
*Broad cost leadership/broad differentiation
Competitive Intelligence
The process of gathering information about the competitive environment to improve the company’s ability to succeed
Porter’s Five Forces Model
Porter’s Three Generic Strategies
Porter’s Value Chain Analysis
Porter’s Five Forces Model
Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry
PURPOSE is to combat the competitive forces by identifying opportunities, competitive advantages, and competitive intelligence
Determines the relative attractiveness of an industry
Threat of Substitutes
Threat of New Entrants
Buyer Power
Supplier Power
Rivalry among Existing Competitors
Porter’s Three Generic Strategies Model broad cost leadership
Broad market and low cost (Wal-Mart) broad differentiation
Broad market and high cost (Neiman Marcus) focused strategy
Narrow market and low cost (Payless Shoes)
Narrow market and high cost (Tiffany)
Business Process
A standardized set of activities that accomplish a specific task, such as processing a customer’s order
Value Chain
Views an organization as a series of processes, each of which adds value
Exam One Topics: Review Outline
September 30, 2013
Information Systems in Business – Chapter 1
Apple Case and Class Discussion
1. What might have happened to Apple if its top executives had not supported investment in iPods or iPhones or iPads?
*It would have fallen due to the Porter’s Five Forces
2. Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power.
*Buy power is low because iPod is the dominant player in portable music
*Supplier power is average because there are a fair amount of suppliers
3. Which of Porter’s Five Forces did Apple address through its introduction of the iPhone?
*Low buyer power – few substitutes. High supplier power
4. Which of the Generic Strategies is Apple following?
*Broad cost leadership/broad differentiation
Competitive Intelligence
The process of gathering information about the competitive environment to improve the company’s ability to succeed
Porter’s Five Forces Model
Porter’s Three Generic Strategies
Porter’s Value Chain Analysis
Porter’s Five Forces Model
Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry
PURPOSE is to combat the competitive forces by identifying opportunities, competitive advantages, and competitive intelligence
Determines the relative attractiveness of an industry
Threat of Substitutes
Threat of New Entrants
Buyer Power
Supplier Power
Rivalry among Existing Competitors
Porter’s Three Generic Strategies Model broad cost leadership
Broad market and low cost (Wal-Mart) broad differentiation
Broad market and high cost (Neiman Marcus) focused strategy
Narrow market and low cost (Payless Shoes)
Narrow market and high cost (Tiffany)
Business Process
A standardized set of activities that accomplish a specific task, such as processing a customer’s order
Value Chain
Views an organization as a series of processes, each of which adds value