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Harvard Business Review Competitive Forces Paper
Design & Technology
Pages 5 (1255 words)
The relationship between IT and a company's competitive advantage or strategy – use of Porter's "Five Forces" on competition The relationship between IT and a company's competitive advantage or strategy – use of Porter's "Five Forces" on competition 1…
In the context of each organization IT can be both an advantage and a disadvantage in regard to a firm’s competitiveness. The specific role of IT is presented below using examples, as appropriate, for making the relevant views clearer. 2. IT and Porter’s Five Forces on competition 2.1 How IT is intertwined with the effects of Porter's "Five Forces" on competition in a company's industry The Five Forces theory of Porter promotes the idea that in order to survive in its industry a company should identify a strategy for facing effectively five forces: a) the threats related to new entrants, b) threats from substitute products, c) the pressures from suppliers, d) the pressures from customers and e) the increasing competition within the industry (Roy 2011, p.26). In practice, it has been proved that in each organization IT could be intertwined with the effects of these Forces. IT could play this role in two different ways: it could either set in risk a company’s competitive advantages or it could promote these advantages securing the competitiveness of a company. In fact, it seems that in each company IT can influence the performance of the company in regard to the management of all Forces, as including in the Porter’s Five Forces model. Reference should be made primarily to the potentials of IT to provide to firm critical information in regard to the local or the global market (Roy 2011, p.7). ...
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