Competition in The Industry

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In the day today lives of every individual community and the society at large, there is a greater

need of development socially economically and politically. This is possible to be achieved


through the management information system and Information system globally implemented
currently. The process makes it possible for people with their businesses to acquire knowledge
and help them in controlling, monitoring coordinating, planning and decision making for the
betterment of their businesses at large to run smoothly worldwide.

Before going any further this assignment will discuss and explain five (5) Michael porters
competitive forces and explain how Information Commutation Technology(ICT) and
Information system(IS) can be implemented to overcome the forces. Porter's Five Forces is a
model that identifies and analyzes five competitive forces that shape every industry, and helps
determine an industry's weaknesses and strengths. Frequently used to identify an industry's
structure to determine corporate strategy, Porter's model can be applied to any segment of the
economy to search for profitability and attractiveness. The five forces are as follows competition
in the industry, New Entrants into an Industry, Power of Suppliers, Power of Customers and the
Threat of Substitutes.

Competition in the industry

This force refers to the number of competitors and their ability to undercut a company. The
larger the number of competitors, along with the number of equivalent products and services
they offer, the lesser the power of a company Suppliers and buyers seek out a company's
competition if they are able to offer a better deal or lower prices. Conversely, when competitive
rivalry is low, a company has greater power to charge higher prices and set the terms of deals to
achieve higher sales and profits.

As it moves from a strictly supporting role in the back office, computer-based technology offers
new competitive opportunities. A company can use this technology, for example, to build a
barrier to entry, to build in switching costs, and even, sometimes to completely change the basis
of competition. This author shows how some companies have seized the advantage, while others
more complacent have ended up playing the difficult and expensive game of catch-up ball. To
solve customer service problems, a major distributor installs an on-line network to its key
customers so that they can directly enter orders into its computer. The computer’s main purpose
is to cut order entry costs and to provide more flexibility to customers in the time and process of
order submission. The system yields a larger competitive advantage adding value for customers
and a substantial rise in their sales. The resulting sharp increase in the company’s market share
Firstly, I will start with the competition in forces a primary competitor into a corporate
reorganization and a massive systems development effort to contain the damage, but these
corrective actions have gained only partial success.

In many cases, the new technology has opened up a singular, one-time opportunity for a
company to redeploy its assets and rethink its strategy. The technology has given the
organization the potential for forging sharp new tools that can produce lasting gains in market
share. OF course, such opportunities vary widely from one company to another just as the
intensity and the rules of competition vary widely from one industry to another. Similarly a
company’s location, size, and basic product technology also shape potential information system
(IS) technology applications. Computer advances have affected even the smallest companies.
Furthermore, in different situations, a company may appropriately attempt to be either a leader or
an alert follower. The stakes can be so high however this must be an explicit well-planned
decision.

New Entrants into an Industry.

Secondly, the other force is the Potential of New Entrants into an Industry. This states that a
company’s power is also affected by the force of new entrants into its market. The less time and
money it costs for a competitor to enter a company's market and be an effective competitor, the
more a company's position may be significantly weakened. An industry with strong barriers to
entry is an attractive feature for companies that allow them to charge higher prices and negotiate
better terms. The information system will be implemented to overcome this force through
electronic tools and invest more finances into the business to cut off the coming of new business
or company dealing with the same product. Also By permitting the sales force to prepare
complex quotations on the customer’s premises to both emails and other social media platforms.
portable microcomputers not only give better support but also make the sales force feel more
confident and hence sell more products to weaken the coming of new entrants into an industry

Power of Suppliers
This force addresses how easily suppliers can drive up the cost of inputs. It is affected by the
number of suppliers of key inputs of a good or service, how unique these inputs are, and how
much it would cost a company to switch from one supplier to another. The fewer the number of
suppliers, and the more a company depends upon a supplier, the more power a supplier holds to
drive up input costs and push for advantage in trade. On the other hand, when there are many
suppliers or low switching costs between rival suppliers a company can keep input costs lower
increasing profits. In this case the information technology and information system will be
implemented to overcome the power of supplier in such way that Information system will
provide with the vital decision making by using the same brand name to the product and also
information technology will help the business to come up with electronic systems that will keep
their customers strong relationship for example hungry lion and KFC you find that these two
businesses sell the same product so by installing some electronic devices on their tables where
the customers are able to order the product instead of making queues . In doing this the company
will build a strong relation to customers and save their time consuming.

As it moves from a strictly supporting role in the back office, computer-based technology offers
new competitive opportunities. A company can use this technology, for example, to build a
barrier to entry, to build in switching costs, and even, sometimes, to completely change the basis
of competition. This author shows how some companies have seized the advantage, while others,
more complacent, have ended up playing the difficult and expensive game of catch-up ball. He
also points out that it is important for executives to make this competitive analysis in assessing
where IS fits in their companies, since in some cases it appropriately plays a support role and can
add only modestly to the value of a company’s products, while in other settings it is at the core of
their competitive survival. Understanding where a company fits on this spectrum can help the
CEO determine both the proper level of expenditures and the proper management structure for
IS.

To solve customer service problems, a major distributor installs an on-line network to its key
customers so that they can directly enter orders into its computer. The computer’s main purpose
is to cut order-entry costs and to provide more flexibility to customers in the time and process of
order submission. The system yields a larger competitive advantage, adding value for customers
and a substantial rise in their sales. The resulting sharp increase in the company’s market share
forces a primary competitor into a
Power of Customers

This specifically deals with the ability that customers have to drive prices down. It is affected by
how many buyers or customers a company has, how significant each customer is, and how much
it would cost a company to find new customers or markets for its output. A smaller and more
powerful client base, means that each customer has more power to negotiate for prices and better
deals. A company that has many, smaller, independent customers will have an easier time
charging higher prices to increase profitability. In this case the company will keep a strong
relationship with the customers through the implementation of information technology and
information system that will help the company not to go down by their customers. In this case
the company also has to invest more money in the business for new electronics to help the
customers have trust in your products for example debonair pizza this is a company that
introduced the delivering of their products door to door to their customers so that even if the
prices of goods are high the customers will still continue buying their products this is because
they are more sure their products will be delivered. And also information technology has to
overcome this force through online application whereby customers are able to order the products
online and receive their products to their home places.

Threat of Substitutes

Substitute goods or services that can be used in place of a company's products or services pose a
threat. Companies that produce goods or services for which there are no close substitutes will
have more power to increase prices and lock in favorable terms. When close substitutes are
available, customers will have the option to forgo buying a company's product, and a company's
power can be weakened. On this threat the information system together with the information
technology will be implemented to overcome it in such a way that the company brand name has
to be changed and also by installing some application systems that will able to notify the
customers where each customer is able to view manipulate the products available for example
the national milling company if it all there some product being sold by the same company instead
of substituting the product information system brings about new systems that will help the
customers keep the relationship and the company will able to go back to its product.
In conclusion, information communication technology together with the information system has
provides companies with vital information which can be used for planning, coordinating and
proper decision making to their businesses at large. In addition, the five micheal portas
competitive forces has brough a threat to businesses and through the implementing the
information technology and information system has helped the companies to keep their strong
relationship to their products.
REFERENCES

Gerry J.Kevan S. [and Richard W (2006). Exploring Corporate Strategy. (7th edition), Prentice
Hall International Telecommunications Union (1993). African Telecommunications Indicators.

Geneva: International Telecommunications Union. Available online from


http://en.wikipedia.org/wiki/ITU-D

Howcroft, B. and Lavis, J. (1986). A strategic perspective on delivery systems in UK


retail

banking”, Services Industry Journal, Vol. 6 No. 2, pp.144-58.


Kenya Post and Telecommunications Corporation (1990). Annual Reports and Accounts

Effective communication, both internally with your staff and externally with your partners and
customers, is a key requirement in today's business environment.

An intranet is a private - internal - business network that enables your employees to share information,
collaborate, and improve their communications.

An extranet enables your business to communicate and collaborate more effectively with selected
business partners, suppliers and customers. An extranet can play an important role in improving
business relationships and supply chain management.

This guide looks at the potential

benefits of intranet and the benefits of extranet to your business. It describes the similarities between
the two types of networks, their differences and some of the key issues you will need to consider, such
as costs and maintenance.
This guide also explains how to set up a company intranet , how to build a secure extranet and use
content management systems to manage them.

An intranet is a private network which is used for internal communication within an organization. ... -
Document management has many benefits and is important for an organization. An intranet allows the
company to keep documents up to date and enable hassle-free sharing among the employees
throughout the organization.

What is an intranet?

In essence, an intranet is a business' own private website. It is a confidential business network that uses
the same underlying structure and network protocols as the internet and is protected from
unauthorised users by a firewall.

Intranet vs extranet

The main characteristic of an intranet is that it is closed to the public. Extranets, in contrast, are
networks open to the public and typically offer features external users can access, ie customers,
partners, contractors etc. See what is an extranet .

Because intranets are secure and easily accessible via the internet, they enable staff to do work from
any location simply by using a web browser. This can help small businesses to be flexible and control
office overheads by allowing employees to work from almost any location, including their home and
customer sites.

Examples of intranet

Intranets typically look like a private version of the internet. They use HTTP or other internet protocols
to allow a company to share organisational information and computing resources among employees.
You can also use an intranet to facilitate teleconferencing and working in groups.

Other types of intranets are available that merge the regular features of intranets with those often
found in software such as Microsoft Office. These are known as online offices or

web offices. Creating a web office will allow you to organise and manage information and share
documents and calendars using a familiar web browser function, which is accessible from anywhere in
the world.

Connects your company across locations and time zones

Your intranet will become the central hub for your company online. It’s where conversations take place,
company news is shared, and events are planned.
With this in mind, it’s easy to see how it brings multi-location teams together. Each employee and
location has insights into what’s happening throughout the company, regardless of where they’re based.

undeniable benefits of an intranet

Written by Hannah Price | Feb 14, 2018 6:28:22 PM

It’s time to cut back on your meetings. And your emails. It’s time to streamline communication and
make work more efficient.

So, it’s time to get an intranet.

Intranets are powerful tools, but they’re often the unsung heroes of the modern workplace toolkit.

The word is associated with clunky nineties software that’s impossible to navigate and full of outdated
files.

But, the world of work has changed a lot since then. And some intranets have evolved to keep up. Now
they actually help you get work done, rather than inhibit it. Here’s how.

11 benefits of an intranet

1. Improves internal communication

A modern intranet encourages communication to flourish across your organization:

Teams can have open discussions

Individuals can share knowledge

Leadership can to stay in touch

Departments can provide updates


And, the best part is that communication flows both ways. Anyone can share information and articles,
and everyone can comment and provide feedback.

In this way, an intranet both streamlines communication by bringing it into one place and empowers
individuals with a voice and company knowledge.

“For employees to be highly productive, they require clear role expectations, the ability to do what they
do best, communication about their organization’s mission and purpose, and learning and development
opportunities [...]. When employees’ needs are met, they don’t just become “happier”—they become
better performers." - Gallup [Source]

2. Connects your company across locations and time zones

Your intranet will become the central hub for your company online. It’s where conversations take place,
company news is shared, and events are planned.

With this in mind, it’s easy to see how it brings multi-location teams together. Each employee and
location has insights into what’s happening throughout the company, regardless of where they’re based.

3. Helps employees find information

An intranet is a rich pool of information. There’s everything from Social Committee updates to the most
recent dental form.

All of this information is valuable for helping people get work done and stay connected to the softer side
of the business.

An intranet with a simple user-interface and rich search tool will enable employees to stay in the loop
and find the information they need.

4. Boosts recognition and reward

Recognition is an essential part of the employee experience, and it serves to improve employees'
satisfaction and engagement levels.
Research shows that the recognition or reward doesn't need to be monetary or excessive (it can be a
simple 'thank you'), but it does need to be timely.

It's easy to do this with your intranet if it has a live-feed and/or an integration with a peer-to-peer
recognition tool like Bonusly.

"Every instance of recognition adds a little more to (or takes away from) your company culture." - Tori
Fica, BambooHR [Source]

5. Simplifies employee onboarding

A good intranet makes onboarding simpler than ever. New hires can use it to find their feet with easy-
to-access documents, up-to-date organization charts, rich bios on their peers, and a vibrant news hub
that provides information and insights into the culture of the company.

6. Provides organizational clarity

Intranets with clear and dynamic organization charts provide clarity on the shape and set-up of your
company.

Other features, such as individual bios or profiles, add rich layers to this clarity and help employees
understand the roles and responsibilities of individuals throughout your business.

7. Encourages knowledge sharing

Intranets allow organic knowledge sharing to grow, as the person-to-person connections increase and
deepen across your company.

Knowledge experts are more visible, and it’s easier for people to connect with them. Experts can also
get involved in forum-style conversations, or release a blog article series that helps to disperse learning
throughout the company.
In this way, the company’s knowledge can grow rapidly, as a multitude of individuals share their
independent learnings.

“There is no limit to the amount of knowledge that an organization has. However, where the issue of
knowledge sharing is concerned, it is most important that employees share their job-related knowledge
with each other, so that they will be able to perform their job better and eventually lead to higher
organizational performance

An extranet is a private network that uses Internet technology and the public telecommunication system
to securely share part of a business's information or operations with suppliers, vendors, partners,
customers, or other businesses. An extranet can be viewed as part of a company's intranet that is
extended to users outside the company. It has also been described as a "state of mind" in which the
Internet is perceived as a way to do business with other companies as well as to sell products to
customers.

An extranet can add value to your company by helping you communicate and collaborate more
effectively with clients, customers, and partners. Particularly in the business-to-business market, an
extranet can give your company an edge over the competition and save you money by streamlining
traditional business functions and cutting overhead costs.

Extranets offer small businesses many other advantages:

Increased productivity. As you automate processes that were traditionally done manually, bottlenecks
will disappear and your company’s productivity will increase. Critical information won’t get lost in the
mail or buried in an e-mail inbox, and busy employees won’t miss or forget key events. An extranet can,
for example, monitor business activities and trigger specific actions, such as automatically placing an
order with a supplier when your inventory drops below a certain level.
Reduced margin of error.

An extranet can reduce your margin of error, especially when you use it to give specific groups access to
internal applications. This could involve something as simple as giving customers access to their order
histories, or something as complex as processing orders from distributors and suppliers.

Flexibility.

When you use an extranet to make information and applications available to partners, clients, and
customers, everyone can operate when and where it’s most convenient. This self-serve approach frees
you from unnecessary meetings and phone tag, and it cuts down on the costs associated with in-person
information exchanges. For example, an extranet may allow you to provide customer-service
information outside of regular business hours.

Timely and accurate information.

On an extranet you can instantly change, edit, and update sensitive information such as price lists or
inventory information. Compared to typical paper-based publishing processes, an extranet offers a
unique opportunity to get hot information into the right hands before it cools — and before it’s out-of-
date.

Shorter time to market.

If your business is not moving at “Internet speed,” you risk being left behind. An extranet can help you
get your products to market more quickly by making proposals and specifications available to suppliers,
and giving clients and partners up-to-date information on current projects.

Reduced inventory.

One of the hallmarks of a business-to-business extranet is its impact on supply-chain management. By


linking your inventory system directly to a supplier, you can process orders as soon as the system knows
you need them, thus reducing the stock you keep on hand and making the procurement process more
efficient.

Build customer loyalty.


Extranets make business easier for your customers. The more you make timely, accurate information
available to your customers, the more likely it is you’ll keep their business.

As these examples demonstrate, an extranet can help you spend less on supplies, staffing, and other
overhead costs. Given the investment an extranet requires, it may take time for savings to become
apparent. Over a period of weeks or months, however, eliminating even one paper-based process can
yield dramatic savings.

Conclusion

Intranets and Extranets were not yet widely used by public libraries as of the first quarter

of 2010, but the technologies may became more important as an increasing number ofstaff applications
become accessible with a Web browser.

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