Excerpt coming from Case Study:
The importance info Technology (IT) / Info System (IS) in business is undeniable. The effective gathering of information can assist business market leaders make decisions in order to reach a competitive advantage. Eileen Porter and Victor Millar’s paper upon “How Info Gives You [business] Competitive Advantage” is a crystal clear framework for businesses in order to accomplish competitive benefits and profitability. Porter’s model revolves around five forces which might be supplier electricity, buyer power, barriers to entry, danger of alternatives, and competition. This daily news is a case study of porter’s model based on Food Companies of America’s (FSA) organization strategy.
To be able to achieve a competitive advantage, FSA’s strategy others on three main place that are price reduction, item differentiation, and the target of any niche market. The high cost of meals price as indicated on FSA’s home-page is a leading indicator that food suppliers need to present high quality service at an affordable to buyers. The reduction of meals costs and delivery expenses to buyers make for a close and long lasting relationship among FSA and its particular buyers. One more element of FSA’s strategy is definitely product differentiation. As a part of Companies Group of America (SGA), FSA has a close relationship with companies including Systems Service of America, which specializes in “system syndication for speedy service and casual cusine among other, ” and Amerifresh in fresh fruits and vegetables. The diversification technique is also obvious in the marriage with Ameristar Meat and GAMPAC while an expert in logistic. Finally, FSA’s decision to target the West and Midwest market of the United States can be useful for achieving a competitive benefit.
According to Porter and Millar, ” Competitive Scope is a effective tool for creating competitive advantage”(Porter Millar pg4 1985). A great analysis of FSA’s strategy for reaching a competitive advantage uncovers that a pair of the several dimensions of competitive opportunity represent an integral part of FSA’s strategy with the first one being the geographical scope. That opportunity is exemplified by FSA’s presence inside the Western and Midwestern parts. The use of straight and industry scope in FSA’s technique is shown by FSA’s inclusion in the SGA’s family thus the former’s capability to provide a wide array of foods as well as the logistical capabilities to offer the products.
Under the Become a Customer tab on FSA’s website, the TOOL KIT to the left of that tab is definitely an indication of FSA’s use of IT/IS in order to continue to be competitive. Indeed, it is beneficial for FSA