Managing and Information Technology: Competitive Environment and Innovative Ideas for John Lewis

This report analyzes the competitive environment of John Lewis using Porter's five forces and explores how the company uses information technology to implement innovative ideas in their business functions.

MANAGING AND
INFORMATION
TECHNOLOGY CHOOSEN
JOHN LEWIS AS A COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 5.1.........................................................................................................................................3
Description on competitive environment of chosen business with application of porter’s five
forces............................................................................................................................................3
Define analysis on inbound logistic, operations and outbound logistic......................................5
Summarize and reflect on how business use IT to use innovative ideas to business functions.. 7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Information technology termed out as vital and integral part of each business plan. With
advent of technological advancement, the new businesses are created. It is inclusive of the
tangible resources such as networking hardware, computers, individuals as well intangible
resources etc. (Chu and Sinha, 2017) IT managers evaluates organisational needs, research plan
of action, technical solutions that builds cost effective system to accomplish set objectives.
The present report is based on business activities of John Lewis, this is high brand
department stores within UK. It is retail enterprise that sells household goods, cloths, bags etc.
Furthermore, report will lay emphasises on activities as to analyse competitive
environment with application of porter’s five forces analysis. Also, analysis will be conducted
with help of support activities in porter’s value chain. Lastly, reflection will be conducted on
information technology and use of innovative ideas to improve business processes.
TASK 5.1
Description on competitive environment of chosen business with application of porter’s five
forces.
Porter's five forces defined as strategic management tool that assist to determine the
competitive landscape of enterprise. It is effective advancement that aids to make strategic
decision and also helps to improve business performance (Langer, 2017). Thus, porter’s five
forces are outlined as below context manner as-:
Threat of new entrants- This aids to reflects that how new market players impose threats over
existing market players. Therefore, differentiation within commodities is quite strong within
enterprise. Also, entities in this industry sells the differentiated products rather than standardised
commodities. Chosen firm put their more focus on customer services and advertising approach.
Due to all these factors, the threat of new entrant become weak force within industry. In addition
to this, the legal policies within firm requires strict licensing and legal requirements and this
must be fulfilled before firm start selling commodities within market. It makes the new entrant
weaker force to join industry.
This is the enterprise that has an advancement of economy of scale and this also fights off
new entrants through cost advantage. Henceforth, this is one of leading organization that has
strong brand image and identity. In spite of being leading light within retail industry, there is
needs to undertake massive capital investment.

Bargaining power of suppliers- This aids to reflects the pressure that laid by suppliers on
business enterprise by adopting different tactics such as product availability, reduction in quality
and enhance the price etc. (Logan, 2020) Additionally, number of supplier under this industry is
high as compare to buyers. It means that suppliers has less control over the prices and makes
bargaining power of supplier a weaker force. Additionally, suppliers do not contend with other
commodities within this industry. It means that there is no other substitutes for commodities than
one supplier provide. It makes strong force for bargaining power of suppliers.
Therefore, this issue can be overcome if chosen entity have multiple suppliers within
supply chain. By having different suppliers for varied geographical locations. Entity can able to
ensure the efficiency within its supply chain.
Bargaining power of buyers- This shows that pressure that customers puts on business
enterprise to accomplish high quality commodities at better prices with excellent customers
service. It is force that directly influences firm ability to accomplish the set objectives. It is firm
that has high product differentiation and due to this firm do not find alternatives entity that
produce particular commodities. Due to it, buyers cannot switching over to other firm easily.
Thus, one of better advancement of this enterprise is that this offers high quality commodities
and that makes buyers frequent purchase (Madon and Krishna, 2018).
However, the firm needs to put major focus on innovation and product differentiation to
attract more buyers. This possess the high intensity within the retail industry by identification of
customer needs for product and services. Competition among retail firms are quite high as they
have the commodities that needed by individuals in their daily life.
Threats of substitute product and service- The availability of product and services makes the
competitive environment to the enterprise. Additionally, high substitute threat reflects that
customers can have the use of alternative product and services in order to meet the needs and
wants of current market. It has been found out that there are very few firms that are providing the
high quality commodities but they are more expensive. Thus, chosen firm offers lower prices
than substitutes with adequate quality. Also, quoted entity must put their consideration over
providing greater quality commodities at affordable price so that brand advancement of the
enterprise can also get enhanced (Mao, Liu and Deng, 2016).
Also, entity must focus over to undertake analysis on wants of customer as this can aids
to provide unique benefits to customers. However, this can be state that threat of substitute

within this enterprise is quite low due to large number of suppliers within the market. Due to
advancement of online platform the entity is selling large amount of commodities and they
reaching the wide range of customers.
Rivalries among existing firms- The presence of number of customer under this industry gives
the tough competition to the chosen enterprise. Due to this, entity cannot able to make moves
without being noticed. There are very few competitors who have large market share. This is the
factor that makes the competition among the existing firm weaker force within enterprise. In
addition to this, the commodities produced within enterprise are highly differentiated. Due to
this, it is quite typical to competing firms in order to win customers as the commodities are
unique (Marchewka, 2016). Thus, chosen firm put their focus on providing commodities at the
fixed cost and this makes typical for other entities to push the full capacity.
Additionally, it led pressure on John Lewis to lower the prices of offering within market
at time when demand gets down. It is factor that can aids to cope with rivalries in market. In
addition to this, firm needs to put their major focus on new customers rather than winning from
existing firms. There are number of retailer in this industry that offers the best price, service and
this also inclusive of promotion and deals that attract the customers at wider aspect.
Define analysis on inbound logistic, operations and outbound logistic.
Porter’s value chain model can be defined as highly popular within the business world.
With the help of undertaking, value chain activities the entity can able to improve performance
of quoted enterprise. Thus, activities under this analysis are outlined as-:
Primary activities- This is firm that is directly involved in producing and selling the
commodities to the targeted customers. It is analysis that aids to bring improvement in
performance of enterprise. Therefore, this is outlined in below context as-:
 Inbound logistic- This is crucial to develop strong relationship with suppliers and the
support is crucial to accomplish to distribute the commodities in market. If the chosen
firm do not take any analysis then they have to face the various challenges within the
product development phase (Stohl, Stohl and Leonardi, 2016). This analysis can aid to
firm to look over each aspect of transformation from raw material to finished
commodities. There are some examples to inbound logistics are as- retrieving raw
materials, storing the inputs and internally distribution of the raw material to undertake
the production activities smoothly.

 Operations- It is process that become significant at time of the demand of raw material
tends to get enhanced. This is inclusive of the procedure that tends to raw material into
end commodity and this launch the good in market. There are some examples to
operational activities such as machining, assembling, testing and packing etc. in addition
to this, the equipment’s such as repair, maintenance falls under this category. This is
stage that covers the both process as service operations and manufacturing process
(Trantopoulos, von Krogh and Woerter, 2017). With help of undertaking the operational
analysis, this can be found out that it assists in to bring improvement in firm productivity,
maximise the efficiency and also ensures about the competitive success of chosen
enterprise. Enhancement in the productivity can support to John Lewis to gain consistent
economic growth, enhance profitability and set powerful basis of competitive
advancement.
 Outbound logistic- It is process that undertake the activities as to deliver the commodity
to customer by passing through different intermediaries. Thus, activities of outbound
logistic as are handling of raw materials, transporting, order processing etc. If chosen
firm takes the initiative to manage this activities timely along with optimal cost and
product delivery will put minimum negative effect on quality and this can also aids to
enhance the customer satisfaction.
 Marketing and sales- By producing the high quality product at the minimal cost and
distinctive attributes cannot create value until chosen firm invest on marketing and sales
activities. Additionally, quoted firm is using marketing funnel approach to structure the
activities of marketing and sales (Wilkerson, 2018). Effective marketing activities can
enhance the brand image of the enterprise.
Secondary activities-:
It can be termed out as the support activities that plays the huge role in terms to
coordinating and facilitating the activities of primary value chain. Additionally, quoted enterprise
can be beneficial from analysis of support activities on following background as-:
 Firm infrastructural- It denotes the wide range of activities that inclusive with quality
management, accounting, financing, planning, strategic management etc. Additionally,
attractive infrastructure of John Lewis can aids to optimise the value of whole chain.
This aids to strengthen the competitive position within the market.

 Human resource management- They are the authorities that plays the crucial role in
terms to undertake activities in different aspect such as recruiting, selecting, training,
rewarding and performance management activities (Young, Chapman and Meffan-Main,
2020). Thus, effective HR management can allow to quoted enterprise can reduce
pressure and this is based on motivation, skills of workforce and commitment etc. By
hiring the skilled labour workforce the entity can able to undertake the business
operations in effective manner.
 Technology development- In the current era of technological advancement, the all value
chain activities of chosen firm depends on technological support. By use of better
techniques, the entity can able to cope with process as production, distribution, marketing
and activities of human resource activities. By use of tools such as automation software,
technical supported care services to customers and research on product design can aids to
undertake the depth analysis.
Henceforth, this can be stated that value chain analysis aids to identify the activities that aids
to undertake business functions in more streamlined and effective manner. With help of it,
chosen firm can able to undertake the analysis on internal functioning of the enterprise. By better
operational activities the entity can able to process manufacturing activities in more proficient
way that can aids to build competitive advancement. Additionally, value chain managers mostly
looks over opportunities that can aids value to business (Chu and Sinha, 2017).
Summarize and reflect on how business use IT to use innovative ideas to business functions.
The use of information technologies fosters innovation within business enterprise.
Innovation results in smarter apps, improved data storage leads to have faster processing and
wide distribution of the information. With the advent of technical advancement, the business can
able to run its business function in more efficient manner. Additionally, innovation can aids to
enhance the value, quality and boost the productivity of enterprise.
I must say that John Lewis must implement information techniques that aids to bring fast
pace of operational activities and gain competitive advancement with help of exploiting changing
at the competitive scope. Also, I have found out that technologies has crucial effects on business
operations. This has the both tangible and intangible benefits that aids to enhance the business
performance and produce those results that increased the demand of customers. As per the
Porter's five forces model, the threat of new entrant within the industry is moderate. It can be

lower down if firm implement that techniques that helps to bring operational efficiency that can
bring competitive advancement (Langer, 2017). In order to cope up with threats of substitute
commodities, the entity needs to come up with innovative and technical solution that can aids to
bring streamlined services and also cope with productivity of enterprise. Thus, technology is
becoming very crucial in the daily lives as it affects the individuals, communities and businesses.
The main role of IT in business is to facilitating the effective medium of communication that
bring advanced services to the enterprise.
Additionally, this can be stated that technological advancement gives us the way to see
the things from different perspective and also aids to greater the efficiency for conducting the
business. As per the value chain analysis on the chosen firm, to improve the operational function
of entity the firm need to bring those technical equipment’s that aids to fosters the business
functions with help of looking over the activities as machining, assembling, testing and packing
etc. It can led to firm to improve the quality at low cost and bring improvement in speed in terms
to deliver the greater value to customers. By the use of technical advancement as cloud
computing the business can able to outsource the functions of third parties with the use of
internet. With the use of greater advancement the firm can able to undertake the business
operation that bring speed in operational working and allows business to become more refined.
I recommend that creative approaches and innovative ideas are main part that can help to
meet with current as well future trends of market (Logan, 2020). By use of innovative
approaches and ways business can able to create more effective processes and products. Also, I
must say that innovation is vital in the market place as this gives firm competitive edge in
penetrating market fast and also provides better connection to bring development in market. This
can lead to more bigger opportunities and this can have positive impact on the working of John
Lewis working.
CONCLUSION
Hereby, it can be summarized that technology management termed out as set of
management disciplines. It allows enterprise to manage technical fundamental that aids to create
competitive advancement. The present report is based on business activities on John Lewis, it is
retail firm that engaged in product and services of household goods.

Furthermore, study has covered porter’s five forces and value chain to undertake analysis
of chosen enterprise. Also, reflection has been conducted on to how business use information
techniques and innovative ideas to improve business competitive advancement.

REFERENCES
Books and journals
Chu, K.C. and Sinha, S., Cisco Technology Inc, 2017. Managing routing information for tunnel
endpoints in overlay networks. U.S. Patent 9,686,180.
Langer, A.M., 2017. Information Technology and Organizational Learning: Managing
Behavioral Change in the Digital Age. CRC Press.
Logan, P.Y., 2020. Crafting an undergraduate information security emphasis within information
technology. Journal of Information Systems Education, 13(3), p.3.
Madon, S. and Krishna, S., 2018. The Digital Challenge: Information Technology in the
Development Context: Information Technology in the Development Context. Routledge.
Mao, H., Liu, S. and Deng, Z., 2016. Information technology resource, knowledge management
capability, and competitive advantage: The moderating role of resource
commitment. International Journal of Information Management, 36(6), pp.1062-1074.
Marchewka, J.T., 2016. Information technology project management: Providing measurable
organizational value. John Wiley & Sons.
Stohl, C., Stohl, M. and Leonardi, P.M., 2016. Digital age| managing opacity: Information
visibility and the paradox of transparency in the digital age. International Journal of
Communication, 10, p.15.
Trantopoulos, K., von Krogh, G. and Woerter, M., 2017. External knowledge and information
technology: Implications for process innovation performance. MIS quarterly, 41(1),
pp.287-300.
Wilkerson, B.Y., Ford Global Technologies LLC, 2018. Vehicle-based methods and systems for
managing personal information and events. U.S. Patent 10,163,074.
Young, P., Chapman, R. and Meffan-Main, S., WATERS TECHNOLOGIES IRELAND Ltd,
2020. Techniques for Managing Analytical Information Using Distributed Ledger
Technology. U.S. Patent Application 16/510,139.
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