Description: 13:12 minutes. Video of interview with Michael Porter to discuss the components of his famous strategic model. Porter’s competitive forces model has been used to develop strategies for companies to increase their competitive edge. It also demonstrates how IT can enhance competitiveness.
Source: Harvard University, YouTube Video
1. Based on Porter’s model, what are the impact & importance of IT upon corporate strategy implementation and success?
2. According to Porter, IT enhances competitiveness of a firm most critically in:
a. Bargaining power of suppliers, bargaining power of buyers & distribution channels
b. Threat of new entrants & substitute products or services
c. Rivalry between companies
d. All of the above
3. While implementing Porter’s competitive forces model, companies can identify the forces that influence competitive advantage in their marketplace and then develop a strategy. The three classical strategies are:
a. Cost leadership, growth, and differentiation
b. Differentiation, niche, and alliance
c. Differentiation, niche and cost leadership
d. Customer orientation, time, and entry barriers
e. Cost leadership, niche, and increase switching costs
4. Porter’s value chain model divides activities conducted in any manufacturing organization into two parts: primary and support. The goal of value-adding, primary activities is to:
a. Deliver a product or service to the customer.
b. Purchase materials.
c. Process materials into products.
d. Make a profit for the company.
e. Create demand through marketing and sales.
5. Porter’s value chain model divides activities conducted in any manufacturing organization into two parts: primary and support. The primary goal(s) of support activities is to:
a. Enhance the firm’s infrastructure efficiencies (accounting, finance, management)
b. Provide human resources with tools needed to maximize strategic advantage through employees and performance.
c. Engine to power technology development (R&D) and procurement initiatives/activities.
d. Support primary activities
e. All of the above.