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.
information systemsInformation Technology
ATTACHED FILE(S)
1
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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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 5P e a r s o nE d u c a t i o n ,I n c .
C o p y r i g h t©2 0 1 7P e a r s o nE 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 7P e a r s o nE 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 7P e a r s o nE 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.

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