Home Depot – Competitive force and Value chain

Research paper focusing on the company Home Depot – its competitive forces, its overall value chain, and how Information Technology/Information Systems is enhancing its value chain to provide competitive advantage.  Use section title (outline) as follows:

  • Describe Porter’s Five forces and value chains in general.
  • Describe how Information Systems assists Home Depot in implementing their value chains for competitive advantage.
  • Describe Home Depot and analyze it from the perspective of Porter’s five forces, and value chain. Outline the value chain through a diagram. Make sure the company description provides details like its products, its history, etc. even if the company is widely known.
  • Describe how Information Technology/Information Systems is enabling the selected company to enhance its value chain for competitive advantage. Provide instances of such impacts that are properly referenced.

12 Font, double space, 3 pages, include reference.

 

Organizational Strategy, Information Systems, and Competitive Advantage

Chapter 3

3-2

Q1: How Does Organizational Strategy Determine Information Systems Structure?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Strategy Determines Information Systems

2

3-3

Q2: What Five Forces Determine Industry Structure?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Competitive Forces

• Competition from vendors who manufacture substitutes

• Competition from new competitors

• Competition from existing rivals

Bargaining Power Forces

• Bargaining power of suppliers

• Bargaining power of customers

3-4

Porter’s Five Forces Model of Industry Structure

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3

3-5

Examples of Five Forces

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-6

Five Forces at Falcon Security

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

4

3-7

Q3: What Is Competitive Strategy?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Porter’s Four Competitive Strategies

3-8

Q4: How Does Competitive Strategy Determine Value Chain Structure?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Linkages

5

3-9

Task Descriptions for Primary Activities of the Value Chain

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-10

Q5: How Do Value Chains Determine Business Processes and Information Systems?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

6

3-11C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Q5: (cont’d)

3-12

Q7: How Do Information Systems Provide Competitive Advantages?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Principles of Competitive Advantage

7

3-13

How Does an Actual Company Use IS to Create Competitive Advantages? (cont’d)

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Maintains customer account data – IS collects information for ABC (adds value)

– IS saves customers time by automatically filling in part of form (adds value for customer)

• Package & information delivery system – IS helps customer to select delivery address and generate

shipping labels

– What value does shipper get?

3-14

Two Roles for Information Systems Regarding Products

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

8

3-15

Web Page to Select a Contact from the Customer’s Records

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-16

ABC Web Page to Select a Contact from Customer’s Records

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

9

3-17

Web Page to Specify Email Notification

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-18

Web Page to Print Shipping Label

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

10

3-19

How Does The Knowledge in This Chapter Help You?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Identify key points Falcon Security must address in deciding whether to expand its business beyond security services

• Develop guidance for yourself about relationship between competitive strategy and information systems requirements

• Summarize what you have learned from this example in a statement that you could make in a job interview

3-20

Yikes! Bikes!

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• You are the operations manager for Yikes! Bikes, a manufacturer of high-end mountain bicycles.

• New owners plan to pursue lowest-cost vendor strategy by importing low-cost, lower quality bikes.

• New owners not being honest with employees about cutting jobs.

• Say you might be promoted to new general manager. Should you trust them?

Q: Are the owner’s actions illegal? Unethical?

11

3-21

Guide: Your Personal Competitive Advantage

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Who will be your competitors when you seek a job after graduating from college?

• What will be your competitive advantage in the job market?

• What can you do before you graduate to create a competitive advantage for your self?

3-22

Using the Guide: Your Personal Competitive Advantage (cont’d)

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

How do these elements of competitive advantage apply to you personally?

• Switching costs? • Differentiating products? • Creating barriers? • Establishing alliances? • Reducing costs, increasing revenues?

12

3-23

Case Study 3: The Amazon of Innovation

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-24

Case Study 1: The Amazon of Innovation (cont’d)

Three categories of Amazon’s business lines:

1. Online retailing – Own inventory – Associates program – Consignment

2. Order fulfillment

3. Cloud services

C o p y r i g h t © 2 0 1 5 P e a r s o n E d u c a t i o n , I n c . C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

13

3-25

Costs for Fulfillment by Amazon by Type and Size of the Goods to Be Processed.

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3-26

Impact of FBA

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Amazon provides customer service for order processing (handling returns, fixing erroneously packed orders, answering customer order queries, etc.).

• Using Web-standard technology, FBA customers’ order and payment data directly linked to Amazon’s information systems.

• Enables companies to outsource order fulfillment to Amazon, thus avoiding the cost of developing their own processes, facilities, and information systems for this purpose.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *