Porter 5 Power Analysis on Information Technologies Sector

Topics: Industry, Capacity utilization, Costs Pages: 7 (1886 words) Published: January 11, 2012
IT which consisted of software, hardware and service/consulting services is a complicated sector that serves all sectors. Today, everyone agrees that the greatest power is information. There has been no period of access to information is more advantageous. So, instead of accessing the information, managing and using the information determines the level of prosperity of nations and their competitive force. Informatics is the concept that is used for all the information servces that can be connected by computer systems. "Information" examined the activities of companies in the sector consists of the following: * Hardware Vendors

* Software Vendors
* Training and consulting vendors
* Technical service - project planning service providers
Unlike a physical product; it is not possible to measure IT sector's contributions to our lives as ease of use/transport or how often we use the product. The modern lines of business are dependent on computer to improve the productivity and improve the quality of service offered to customers. Without IT side, it is not possible to carry out daily transactions. There are a few reasons for information technology being integrated into business life: * Rapidness

* Productivity – Efficency
* Ability to make more than one job
* Cost Advantage
* Internet-generated new business models

In Turkey, "e-transformation Turkey Project" launched in 2003. Success indicators which are targeted by e-transformation project to access to information society are; * Total factor productivity growth

* High-tech and / or the production of high value added products and exports share in total GSHM * Investments in information and communication technologies * Investment in the share allocated to R & D,

* Information and communication technology-related educational level * The utilization rates of information and communication Technologies

Social and cultural contributions are defined in the IT sector’s added values. In 2002, total public investment in IT investments are $ 158.8 million while in 2005 this share was U.S. $ 386.5 million. In a survey for IT sector, IT sector in 2011 target to serve government, telecom, finance, manufacturing and energy sectors. In the same survey, more than 300 companies which is among the top 500 IT companies in Turkey were grown in 2010 too. A growing number of companies with more than 50 percent is 64, a growing number of companies with more than 100 percent is 20, a growing number of companies with more than 200 percent is 4 and a growing number of companies with more than 300 percent is 2 (Interpro 2011). According to the results of the same research IT market in 2009 decreased by 12.6 per cent in dollar terms was $ 24.6 billion. There was a strong transformation in the sector in recent years. Although falling demand and profitability, they hold the same stocks and institutional structures are altered. As of June 2009, aspects that participants judged as most negative and troublesome are 83% of the purchasing power of consumers, profitability of the company with 67%, With a 61% decrease in sales of the company came to the fore. 2010 indicators are examined, especially the growth exhibited in the hardware industry, software and information technologies, demonstrating the rise in the IT sector exhibited a growth by 6.5% on average. In Turkey, IT sector is examined by keeping out of the communication sector were $ 7.5 billion in volume. However, approximately 80 percent of this market comes from hardware, 8 ​​percent comes from software licenses. The service sector which adds value to this sector is 12% of the total.

The software industry is still (except for special projects) for the commercial activities of enterprises (accounting, inventory, payroll, etc.) within the framework continues to develop solutions. In recent years, some of the solutions developed for enterprise...
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