Figure 57 Porters Five Forces

Supplier power Suppliers provide the raw materials, such as labor or supplies, for producers. If suppliers are powerful, they can exert more control over the producers that they supply. The fewer numbers of suppliers within an industry, the greater the power for those suppliers. For example, if only one mine provides a needed material to a particular industry, that mine can sell its material at a higher price. Barriers to entry In theory, any business should be able to enter or exit a market....

Net Readiness Scorecard What Do I Do with the Results

Determine Strengths, Weaknesses, and Disagreements Based on the gap scores of each pillar, you can determine some of the strengths and weaknesses in the organization. If a pillar has a particularly high gap score, try to determine what the weaknesses are. Generate a List of Possible Solutions After evaluating the scores and determining the strengths, weaknesses, and areas of disagreement, you should consider how to address each of those elements. Referring to your NRS scores recorded earlier...

Customer Care

Customer care, also known as CRM, aligns business processes with customer strategy to enable companies to interact with their clients throughout the customer life cycle. CRM is increasingly becoming a source of significant differentiation between enterprises. Wal-Mart, as an example, is renowned for its focus on CRM. Its systems allow for the collection of precise telemetry on its customers, their desires, and their buying habits. The customer life cycle, shown in Figure 4-25, begins with the...

Strategy Two Core Versus Context

NVOs have a fanatical focus on core competencies. Supporting or context competencies are quickly outsourced or done away with entirely whenever it is possible. NVOs rely on multiple partners to perform business functions that are required to deliver products and services. By partnering with other organizations that have complementary core competencies, an organization can achieve the benefits of industry scale and innovation that it could not achieve if it tried to do everything by itself. Core...

Situation Analysis and Visioning

A company without a strategic plan is like a ship without a rudder. It will be able to perform all the functions that a ship is supposed to be able to perform with one key exception it will not be able to follow a course of action. Like the rudderless ship, a business without a business plan or strategy will float aimlessly until it sinks. So what exactly is business strategy Business strategy is a specific action plan designed to achieve a goal or objective. The primary aim of a business...

Case Studies

This section looks at three case studies that involve companies attempting to achieve differentiation through the application of technology. After each case study is a worksheet where you should list the key differentiation that was achieved and note whether you think that this differentiation is reproducible by the competitors of the company. Also note whether you think that this differentiation would be a good candidate for outsourcing or out-tasking for the company in review. Case Study 1 In...

The Value Chain

Armed with a definition for value, you can learn how that value is generated by the business and delivered to the buyer. This generation and delivery of value is called a value chain. This section explores some of the implications of such a chain. Michael Porter, in addition to his five forces, developed a flow diagram that illustrates the sequence of activities that generates value. As shown in Figure 2-5, these activities are inbound logistics, operations, outbound logistics, marketing and...

Figure 55 Elements of PEST Analysis

- Overall concern for health issues - Research and Development activities - Speed of technological change The PEST analysis The PEST analysis takes into account the following elements Political factors These are government regulations and legal issues that define both the formal and informal rules under which your organization must operate. Economic factors These affect the purchasing power of potential customers and the business cost of capital, or the rate of return that a firm would receive...