Porters Model

Porters Model

The competitive forces in Porter’s model are the threat of new competitors entering the market, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the rivalries among existing firms in the industry. They can endanger a company’s position in an industry. Businesses can adopt certain strategies to achieve competitive advantage. Cost leadership strategy is used to produce products and services at the lowest cost in the industry. Differentiation strategy is used to offer different products/product features and services. The innovation strategy is the introduction of new products and services, putting new features in products and services that already exist, or developing new ways to produce products. The operational effectiveness strategy allows firms to perform similar activities better than rivals by improving the method in which internal business processes are executed. Customer-orientation strategy is implemented to concentrate on making customers happy.

Information resources are the entirety of hardware, software, data, and networks used within an organization. Businesses usually need hardware, software, databases, networks, procedures, security facilities, and physical buildings. It is important for a general manager to be knowledgeable about information technology because they are scattered throughout the organization and can change frequently, making it difficult to manage. A manager knowledgeable about information technology has time to work in the field rather than working in the office, spending more time planning activities rather than “putting out fires”. They can more easily and quickly gather information for decision making by utilizing search engines and intranets. When properly using information technology, managers can complete tasks more efficiently and effectively. Information technology allows managers to supervise employees more efficiently,...