Competitive Advantage

Heyyhoo . err , Assalamualaikum peeps . Today is the day that i'm gonna tell a little things about the second chapter in the subject of IT. In this chapter I had learned about the porter's five forces model . what is the mean of porter's five forces model , guess what? . It is means the useful tool to aid organization in challenging decision whether to join a new industry or industry segment.

Here the diagram of Porter's Five Forces Model that i have found :

Porter's Five Forces Model consist of
1) Threat of new entrants
2) Bargaining power of customers
3) Treat of substitutes
4) Bargaining power of suppliers
5) Rivalry among competitors
  
The first one is a new entry of a competitor into your market also weakens your power. Threat of new entry depends upon entry and exit barriers. Threat of new entry is high when capital requirements to start the business are less, a few economies of scale are in place, customers can easily switch (low switching cost), your key technology is not hard to acquire or isn’t protected well, and your product is not differentiated. Some new firms enter into industry and low performing companies leave the market easily. When both entry and exit barriers are high then profit margin is also high but companies face more risk because poor performance companies stay in and fight it out. When these barriers are low then firms easily enter and exit the industry, profit is low. The worst condition is when entry barriers are low and exit barriers are high then in good times firms enter and it become very difficult to exit in bad times.

Secondly are bargaining Power of customer. It is means, How much control the buyers have to drive down your products price, Can they work together in ordering large volumes. Buyers or customers have more bargaining power when few buyers chasing too many goods, buyer purchases in bulk quantities, product is not differentiated, buyer’s cost of switching to a competitors’ product is low, Shopping cost is low, buyers are price sensitive, credible Threat of integration.
Buyer’s bargaining power may be lowered down by offering differentiated product. If you’re serving a few but huge quantity ordering buyers, then they have the power to dictate you.


 Thirdly are threat of substitute products. Threat of substitutes are means how easily your customers can switch to your competitors product. Threat of substitute is high when there are many substitute products available and the customer can easily find the product or service that you’re offering at the same or less price. The substitutes are a threat to your company. When there are actual and potential substitute products available then segment is unattractive. Profits and prices are effected by substitutes so, there is need to closely monitor price trends. In substitute industries, and if competition rises or technology modernizes then prices and profits decline.

Next are bargaining Power of suppliers. It is means how strong is the position of a seller.  How much your supplier have control over increasing the Price of supplies. Suppliers are more powerful when the suppliers are concentrated and well organized, and a few substitutes available to supplies. When suppliers have more control over supplies and its prices that segment is less attractive. It is best way to make win-win relation with suppliers. It’s good idea to have multi-sources of supply.

The last forces model are rivalry among competitors. It means the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. Industry rivalry is high when here are number of small or equal competitors and less when there’s a clear market leader, customers have low switching costs, industry is growing, and exit barriers are high and rivals stay and compete.

That all i had learn for this chapter , InsyaAllah we'll meet again . xiexie, zaijian. 

Introduction of Information Technology (IT)

Assalamualaikum . today I'm gonna tell a little things about my first chapter of Information Technology (IT) subject . The objective of IT are :
   i)to describe the relationship among people,
  ii)information and information technology. 
  iii)explain how technology helps them to work together.

For information, the IT in our daily life is too related. Today, electronic that connect to one another are found in everywhere such as in the office,home ,car and so on. In IT it's also have an impact on business operation. It can reduce the cost of paper, and time. Second are improving productivity in the process to promote the product with smoothly. Thirdly, generating growth in case of increasing on demand and supply.

 The basic of IT are information technology , it's a field processing information. It also covering many field that deals with the use of electronic computers and software to convert or store or else. It's important enabler of business success. Besides that, management information system (MIS) are included in the basics of IT. It is a business function just as marketing, finance, and also human resources. MIS is a general name for the business function and academic discipline.

In case of that, the Important elements of MIS are data,information, and business intelligence, second are IT resources, third are IT cultures. Firstly is data, the raw facts that describe the characteristics of an event. Next are information, it is the data converted into a meaningful and useful context. Last are business intelligence helps companies gain a more comprehensive knowledge of the factor affecting their business. The seconds elements are IT resources that refers on three key of resources. There is people, information, and information technology. The third elements MIS are IT cultures. IT cultures are related to the people behavior. It is influence the way people use information in other words are their information behavior and will reflect the importance that company achieving success or avoiding failure.

 The last things in this chapter are the organizational of information cultures. It is consist of four information cultures. firstly are functional culture. The functional culture is how the employees use information as a means of exercising influence or power over others. Secondly are sharing culture. Sharing culture are employees across departments trust each other to use information to improve performance to be much better. Next are inquiring culture. In inquiring culture, the employees across department search for information to better understand the future and align themselves with current trends and new direction. The last informational culture are discovery culture. It's when employees across departments are open to new insights about crises and radical changes.

 Conclusion is, based on what i have learned in this chapter, Information Technology (IT) are very related in the business field now-days and it is said that the global information in our fingertips.