SIS ASSIGNMENT 2
GIFTY APUDEGO
BAC05120095
STRATEGIC INFORMATION SYSTEM
Competitive forces are the forces that shape industries and economic sectors, which can be used to determine the competitive strength or weakness of a company. Some competitive forces are the power of suppliers, the power of buyers, the ability of new competitors, new entrants and substitute products. These forces are also known as the Porter’s five forces.
The aims of the five Porter’s forces are to attract profit, help in acquisition of more customers, used as a conceptual background for identifying an organization's competitive strengths and weaknesses, and also help to identify opportunities for and threats to the organization.
Power of Buyers: One major factor affecting the power of buyers is relatively high switching costs. If a person has one bank that service his banking needs, mortgage, savings, checking, etc, it can be a huge hussle for that person to switch to another bank.
To try and convince customers to switch to their bank, they will often lower the price of switching, though most people still prefer to stick with their current bank. The internet has greatly increased the ease and reduced the cost for consumers to compare the prices of opening or holding accounts as well as the rates offered at various banks. Power of Suppliers: Capital is the primary resource on any bank and there are four major suppliers of capital in the industry.
1. Customer deposits. 2. Mortgage-baked securities. 4. Loans from other financial institutions. 4 . Mortgages and loans
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources required to service their customers' borrowing needs while maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely
BAC05120095
STRATEGIC INFORMATION SYSTEM
Competitive forces are the forces that shape industries and economic sectors, which can be used to determine the competitive strength or weakness of a company. Some competitive forces are the power of suppliers, the power of buyers, the ability of new competitors, new entrants and substitute products. These forces are also known as the Porter’s five forces.
The aims of the five Porter’s forces are to attract profit, help in acquisition of more customers, used as a conceptual background for identifying an organization's competitive strengths and weaknesses, and also help to identify opportunities for and threats to the organization.
Power of Buyers: One major factor affecting the power of buyers is relatively high switching costs. If a person has one bank that service his banking needs, mortgage, savings, checking, etc, it can be a huge hussle for that person to switch to another bank.
To try and convince customers to switch to their bank, they will often lower the price of switching, though most people still prefer to stick with their current bank. The internet has greatly increased the ease and reduced the cost for consumers to compare the prices of opening or holding accounts as well as the rates offered at various banks. Power of Suppliers: Capital is the primary resource on any bank and there are four major suppliers of capital in the industry.
1. Customer deposits. 2. Mortgage-baked securities. 4. Loans from other financial institutions. 4 . Mortgages and loans
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources required to service their customers' borrowing needs while maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely