Information System Foundation

This article discusses the competitive forces in the car service industry and rates each force as either high, medium, or low. It also describes the competitive strategy of the car service business and the type of knowledge provided by the new information system. Additionally, it explains the decision-making the new information system supports and for whom. The article follows the secondary value chain as it includes technological development that helps the organization to gain speed, accuracy, and quality.

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Q1. Describe the competitive forces in the car service industry, and rate each? Force as
either High, Medium, or Low. (1 mark)?
The porter’s 5 forces includes analyzing a business model from different perspective.
This ensures the different industries level so that it can determine the profitability. The forces
includes:
 Competition in the market: this describes the number of competitors are there in the
market that may hamper the company’s production. There is a high competitive
market for this car service business. From the given case study it can be stated that the
effect from competition in market is high.
 Threat from new entrants: the working of a company gets affected from many factors.
Among this threat from new entrants is the most prominent one. This describes the
chances of getting replaced by the new company. Threat from new entrants are high
as there are many car service business.
 Bargaining power of suppliers: this describes the capability of the suppliers to
influence the marketing of any organization. Bargaining power of suppliers are low.
 Customer power to bargain: this describes the power of customer to influence the
business. Smaller client base will hold more power. Bargaining power of the
customers.
Threat from substitute products: their always lies a threat from new substitute products.
This depends on the customer’s reliability on the product (Porter & Millar, 2015). Threat
from substitute products are less because it is having better online system that helps the
business to provide better service towards their customer.
Q2. Describe the competitive strategy of the car service business (1mark)?

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The competitive strategy used behind this business is associated with developing cars
and providing better services towards the customer. Car servicing is highly competitive and
expensive. In order to provide better and secured service booking system. With the help of
online booking system the customer van book their services and also in case they face any
problem they can contact the executive (Narayanan & Fahey, 2015). The new developed
system also gathers details about the customer including address, telephone number, and
insurance number and can also rate their service. This helps the business to work in a better
manner.
Q3. Using System Porter’s Value model, what is the Human Activity described in the
scenario, and classify it as either primary or secondary. Justify your decision. (1 mark)?
There are total five primary activities that are associated with Porter’s value chain and
effect the human activity in every organization. The activities include inbound logistics,
operations, outbound logistics, sales and marketing. Whereas the secondary activity incudes
infrastructure of firm, procurement, managing the human resources and technological
development. In the given case study the business follows secondary value chain as it
includes technological development that helps the organization to gain speed, accuracy and
quality.
Q4. What type of knowledge does the new information system provide? (1 mark)
The knowledge shared with the implementation of new system that it provides a better
and secured way of business. The system also stores the information in secured way and the
new information is able to generate mail for specific customer that offers them with
competitive prices on monitoring holidays, insurance and also provides information about the
car salesman. This allows the sales man to describe new best deals for the car owners
(Grundy, 2016).

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INFORMATION SYSTEM FOUNDATION
Q5. What decision-making does the new information system support, and for whom? (1
mark)?
The new information system I developed for customers and for the sales person. This
will help the customer to gain better offers with less money (Yunn & Yisheng, 2014).
Moreover the services provided to the customer will be quick and sufficient. For the sales
person it will be beneficial as they will be able to convince right customer with right deals
after viewing the information stored in the system.

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Reference
Grundy, T. (2016). Rethinking and reinventing Michael Porter's five forces model. Strategic
Change, 15(5), 213-229.
Narayanan, V. K., & Fahey, L. (2015). The relevance of the institutional underpinnings of
Porter's five forces framework to emerging economies: An epistemological
analysis. Journal of Management Studies, 42(1), 207-223.
Porter, M. E., & Millar, V. E. (2015). How information gives you competitive advantage.
Yunna, W., & Yisheng, Y. (2014). The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable
Energy Reviews, 40, 798-805.