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

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