The Role of IS Tools in Measuring Competitive Position

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1. Porter's Five Forces Model

The key element is rivalry between existing competitors.

The other 4 elements, all of which can contribute to rivalry, are:

• the threat of new entrants
• the threat of substitute products
• the bargaining power of buyers
• the bargaining power of suppliers

How can IS be used to counteract these threats in the five forces model, Table 6 demonstrates these IS strategies in the five forces model with examples:

2. Generic Business Strategies

Porter (1985) devised three generic business strategies to help implement strategies identified in the Five Forces model. Table 7 demonstrates these generic strategies with examples:

3. Strategic Thrusts

Porter's idea of a generic business strategy was expanded into an analysis of competition at industry level, rather than organisation level by Rackoff, Wiseman & Ullrich (1985). Their Strategic Option Generator takes the form of a grid, which identifies five areas of strategic thrust to outstrip competitors:

• Differentiation
• Low Cost
• Innovation
• Growth
• Alliance

Against each of these areas, is a strategic target:

• Supplier
• Customer
• Competitor

4. Business Modelling

A business model is a theoretical representation of an organisation, which illustrates how it operates, either at business unit level, or an organisational level. A high-level analysis can identify the type of industry to which the organisation belongs (for example: public service, transport, utilities). A more detailed analysis can reveal the type of trading it operates (for example: self-service store, hypermarket, e-commerce operator).

The strategic thrust model analyses competition at industry level, rather than organisation level as in Porter's five forces model. The strategic analyst then uses a grid to identify the strategic thrust and strategic target. Armed with this information, it is then easier to identify the type of strategy to be used (offensive/defensive - attack or protect) and the direction of the thrust (usage/provision).

Once these elements have been identified, it is then possible to identify the IS tools/skills that can be used to either support the selected strategic thrusts, or to help shape the organisation's strategy. This model can therefore help identify the organisation's current approach, and the role of IS in helping the organisation in its approach, as well as defining and supporting what the organisation's strategic approach should be.

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Reference(s)
	Book		Chaffey, D. & Wood, S. (2004) Business Information Management: Improving Performance Using Information Systems. Financial Times Prentice Hall: United Kingdom (UK), England, Essex, Harlow. [ISBN: 9780273686552]. [Available on: Amazon: https://amzn.to/3yZ6vdF].
	Book		Laudon, K. C. & Laudon, J. P. (2007) Management Information Systems: Managing the Digital Firm. 10th Edition. Pearson Prentice Hall: United States of America (USA), New Jersey (NJ), Bergen, Upper Saddle River. [ISBN: 9780132415798]. [Available on: Amazon: https://amzn.to/3UhgqDH].
	Book		Porter, M. E. (1985) Competitive Strategy: Techniques for Analyzing Industries and Competitors. The Free Press: United States of America (USA), New York (NY). [ISBN: 9781416590354]. [Available on: Amazon: https://amzn.to/3DwGgxR].
	Journal		Rackoff, N., Wiseman, C. & Ullrich, W. A. (1985) Information Systems for Competitive Advantage: Implementation of a Planning Process. MIS Quarterly, Volume: 9, Issue: 4, Page(s): 285. [Available on: ProQuest: http://search.proquest.com/docview/218113709].

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Reference (or cite) Article
	Kahlon, R. S. (2013) The Role of IS Tools in Measuring Competitive Position [Online]. dkode: United Kingdom, England, London. [Published on: 2013-01-16]. [Article ID: RSK666-0000064]. [Available on: dkode | Ravi - https://ravi.dkode.co/2013/01/the-role-of-is-tools-in-measuring.html].

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