Question

Porter's Five Forces - Porter's Five Forces Analysis is an important tool for understanding the forces that shape competition within an industry. It is also useful for helping you to adjust your strategy to suit your competitive environment and to improve your potential profit. It works by looking at the strength of five important forces that affect competition: Select one of the 5 forces described and discuss how this model helps companies develop competitive strategies using information systems?

Answer 1

One of the 5 forces selected is the Threat of Substitution.

the threat of substitutions means that the currents and potential customers of the company can find a new company to take products and services from. Using information technology, the company can develop a competitive strategy to win the competition. Using IT, the company can focus on strong rand promotions and advertisements on various social media and traditional media like Facebook, TV, and youtube, etc. This force helps the company to know the potential threat that the substitute can put on the company's progress and helps in understanding the next effective step. using IT, the company can evaluate the strategy, vision, mission, and other management strategies of the substitute firms and make policies accordingly.