Information System Foundation

Running head: INFORMATION SYSTEM FOUNDATION
INFORMATION SYSTEM FOUNDATION
Name of the Student
Name of the University
Author Note

1
INFORMATION SYSTEM FOUNDATION
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)?