Based on the information contained in the Business Systems Plan and the Strategic Information Systems Assessment, write an IT strategy statement that details the following:
- Critical success factors for the IT manager
- A general strategy for how the IT department will determine congruence between the goals of the IT department and the goals and objectives of the case study organization
- A general strategy for how the IT department will support the goals and objectives of the case study organization
Running Head: QUALITATIVE EVALUATION1 Rosa Chargois
October 12, 2015 Qualitative Evaluation of the Industry?s Strategic Position 2 Table of Contents
Qualitative Evaluation of the Industry?s Strategic Position 3 Threat of New Entrants 3
Threat of Substitute Products or Services 4 Bargaining power of customers 4
Bargaining power of suppliers 5 Intensity of competitive rivalry 5
Strategic Information System Assessment????????????????????????.5
Forces that Governing Competition????????????????????????.7
Strategic Thrusts???????????????????????????????..7 References?..?...?????????????...?????????????.8 Qualitative Evaluation of the Industry?s Strategic Position 3 Qualitative Evaluation of the Industry?s Strategic Position
The qualitative evaluation of the industry?s strategic position is one of the main
approaches to check the organization business conditions in the market effectively and
efficiently. In this scenario, the aspect of the information technology industry that has selected is
the PC industry because this industry is the need of time for most of the organizations and
common people. Now, this paper would use Porter?s five forces to make a qualitative evaluation
of the PC industry?s strategic position and increase the knowledge and understanding about this
industry. Thus, it can be described as below.
Threat of New Entrants
Threat of the new entrants is the approach in which new companies/organizations try to
enter in an existing market and affect the potential organizations in the same industry. Therefore,
in the analysis of any organization or industry, it is important to know about the new entrants or
competitors in the context of the same category of the products (Porter, 2008). This situation can
help to provide information about the barriers to entry in the industry and suitable environment
for PC organization in the market. When there would be several barriers for new entrants, such
as financing, tough rules and regulation, and others, the entry of a new firm would be reduced.
Now, the PC industry is an attractive industry because of the need of advanced
information technology for the other firms for operational efficiency. Further, individual PC
requirement is also increasing for the personal use by the people. Therefore, the PC industry is
very profitable when business is conducted strategically. But, there are several barriers for new
entrants, such as huge competition and quality of the products of the companies (Porter, 2008).
In this scenario, a new company cannot survive in the challenging market without innovative
technology. Qualitative Evaluation of the Industry?s Strategic Position 4 Threat of Substitute Products or Services
Substitute products or services are considered as the other options of the main product
that affect it sales in the market. In this PC industry, there are several substitute products that
usually reduce the sales and profits of this industry, such as laptop, tablet, and android mobile
phones. These alternative products have become second option to offering for the people to use
in daily life (Porter, 2008). However, the needs of PC by the organizations cannot be changed at
all because of convenient and cost effective. Therefore, the threat of substitute products is less
effective for the PC industry and it can grow in the market effectively and efficiently because of
the use of advanced technology according the needs of the business requirement.
Bargaining Power of Customers
The bargaining power of customers is related to the other Information Technology to use
against the PC industry, such as Internet. However, the facilities of the PC industry cannot be
neglected because Internet runs on the PC or other substitutes. Further, the customers have not
any other option to purchase apart from the PC because of cost effective IT products than the
other, such as laptop and tablet (Magretta, 2013). Thus, the bargaining power of the buyers in
terms of putting the PC industry under pressure is less effective because of its needs in every
industry and reduction of the cost burden of the company.
Bargaining Power of Suppliers
Suppliers also play the most important role in any industry that can force Manufacturing
Companies through increasing prices of the supplied products or switching the existing company.
However, in the PC industry, the bargaining power of suppliers is less effective because of large
volume of suppliers and cost effective parts that supplied in huge quantity to the PC Qualitative Evaluation of the Industry?s Strategic Position 5 manufacturing companies (Magretta, 2013). Most of the companies in this industry manufacture
several computer parts that also reduce the effect of bargaining power of suppliers. Further, the
computer manufacturing companies always needs original products to avoid duplicity. Therefore,
it is less probability of the suppliers switching to the other companies when they would get value
and timely payment in this industry.
Intensity of Competitive Rivalry
The intensity of competitive rivalry is known as the existing companies that operate their
business in same categories of the products. At this stage, in the PC industry, there are several
organizations that manufacture computers and give tough challenges to the other companies. In
this, the competitors that can be seen in the PC manufacturing company are the, Apple, HP, and
Samsung, as well as Sony, including IBM and Toshiba (Hill & Jones, 2011). These companies
always try to take competitive advantage through their innovative products and marketing
strategy to increase sales and profits in the market. Therefore, it can be stated that the PC
industry have a sustainable competitive advantage because of the competition at the global level
through making strong customer base.
Strategic Information Systems Assessment (Week 2 IP)
The strategic information system assessment for the PC (Personal) industry is most
important because it would provide real condition of the organizations or their IT business in the
global market. In this scenario, a SWOT analysis and assessment of the forces that governing
competition for the organization would be described. Further, it would also describe about the
use of Wiseman?s framework of strategy development in order to define the strategic thrusts and
related advantage in an information systems management plan. Qualitative Evaluation of the Industry?s Strategic Position 6 SWOT Analysis
Strengths: The main strengths of the PC organization can be considered as innovative
technology and strong distribution system in the world. Further, most of the organizations of the
PC industry are known for their brand name and recognition in the market that help to increase
sales and increasing customers? volume (Aiba et al., 2014). The first choice of the other
industries for the personal computer in their daily business operations is also one of the main
strength of the PC industry. Apart from these strengths, the increasing needs of the common
people in order to give education to their children have also improved its market conditions at the
Weaknesses: The PC industry and its various organizations have some weaknesses also
that can be seen as huge competition and some technical issue in the computer system. The
product usually takes more electric power than the laptop; therefore most of the people do not
want to purchase PC for personal use. Further, this industry has now become concentrated in the
global market that can reduce sales of the PC and less opportunity to grow in the market.
Opportunities: The PC organizations have several opportunities in the market because of
increasing demand and cost effectiveness. Further, PC industry has gained the trust of the people
that also motivating to implement latest technology for the growth of the companies (Aiba et al.,
2014). There are some other opportunities for the PC industry that can be seen as opening new
manufacturing plants at the global level. However, there is also possibility to create PC in
different languages to target the customers.
Threats: This PC industry and its organizations always worry about the competition
because of the availability of several PC manufacturing companies. Additionally, the increasing Qualitative Evaluation of the Industry?s Strategic Position 7 demand of the laptop because of convenient to carry from one place to other has creates threats
for the PC organizations effectively and efficiently. At the same time, the less consumption of the
electricity by the laptop device is also one of the main threats for the PC industry.
Forces that Governing Competition
The most important forces that are presently governing competition for the PC
organization are the innovative technology and its distribution system. When any organization
that pays more attention towards manufacturing of PC; there would be requirement of latest
software to run them. This software also creates a force in governing competition because there
are some programming development companies that create software for the PC industry, such as
Microsoft and Apple (Morris, 2013). Further, suppliers and distributors are also play the most
important role in the present scenario governing competition in the market. This is possible on
the basis of PC manufacturing organizations? brand name and quality of the technology,
including reputation in the market. In most of the situations, the needs and wants of the
customers also affect the PC organizations in the market because they purchase that system that
satisfies their needs.
On the basis of Wiseman?s framework of strategy development, the strategic thrusts are
the competitive moves in which defensive or offensive strategies are adopted by the organization
to achieve more strategic target in IT planning process (Hammer, 2012). In this, the PC
organization can build a business case for implementing information systems management plan
on the basis of differentiation of the products in which companies can develop latest features to
make the PC system different than the other organizations. Further, in order to develop strategic
thrusts, the PC organization can keep the cost of the product challenging in the market based on Qualitative Evaluation of the Industry?s Strategic Position 8 the quality and competition because it can provide strategic advantage to the company as the
increasing sales and market share.
At the same time, the PC organization can also adopt innovation strategy to develop new
products and services under strategic thrusts because it can help to create advanced technology to
satisfy the needs of the customers and making more customers? volume. Further, it can also be
considered that the strategic thrusts of the PC organization also include growth thinking in order
to expand business in the global market (Hammer, 2012). This strategy can give a competitive
advantage to the PC organization through capturing developing countries? market. At last, it is
also necessary for the PC organization to make alliance with other companies in the same
industry to create strategic thrusts because this alliance can also help PC organization to increase
competitive market condition.
? Qualitative Evaluation of the Industry?s Strategic Position 9 References
Aiba, et al. (2014). General Management and Business Strategy. Retrieved from:
Hammer, M. (2012). The Intercultural Development Inventory: A new frontier in assessment and
development of intercultural competence. Retrieved from: https://idiinventory.com/wpcontent/uploads/2013/08/HAMMER-STUDY-ABROAD-ARTICLE-2012.pdf
Hill, C., & Jones, G. (2011). Essentials of Strategic Management. USA: Cengage Learning.
Magretta, J. (2013). Understanding Michael Porter: The Essential Guide to Competition and
Strategy. USA: Harvard Business Press. https://hbr.org/product/understanding-michaelporter-the-essential-guide-t/an/13023-HBK-ENG
Porter, M.E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors.
USA: Simon and Schuster.http://books.simonandschuster.com/CompetitiveStrategy/Michael-E-Porter/9780684841489
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