Strategic Information System INTRODUCTION 1 PART 11

The study is based upon Rip Curl in Australia which is private company deals with retailer sector provide best sportswear to customers. Business background Rip Curl is small Australian retailer surfing store who manufacture sportswear and provide such a high quality of products in low and affordable price. Presenting what industry is it Rip Curl is based upon retailer and private industry and consider different from other because they produce a large quantity of products and sale them in order to maximizes profit.

Strategic
Information System

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Business background..........................................................................................................1
2. Presenting what industry is it.............................................................................................1
3. Presenting Environment analysis.......................................................................................2
4. Industry environment..........................................................................................................3
5. Competitive advantage of Rip Curl....................................................................................4
6. Opportunities and threats....................................................................................................5
PART 2............................................................................................................................................6
1. Firm's resources..................................................................................................................6
2. Capabilities identification...................................................................................................6
3. Core competency analysis..................................................................................................7
4. Suitable information system solution ................................................................................7
5. Presenting proposed system and recommendations...........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic information systems are develop to response on corporate business inaugural.
They help to determine competitive advantage and using this, company offer low cost products
to their customers. The study is based upon Rip Curl in Australia which is private company deals
with retailer sector provide best sportswear to customers. Report present its environment analysis
using political, social and economic factors and describe industry situation i.e. supplier power,
potential entrants etc. Further, describe competitive advantage of quoted company with
opportunities and threats, it explain firm's resource, tangible, capabilities identification, core
competency analysis. Report evaluate proposed system and provide recommendations.
PART 1
1. Business background
Rip Curl is small Australian retailer surfing store who manufacture sportswear and
provide such a high quality of products in low and affordable price. It is a major athletic sponsor
too and have companies in Europe, South America and North America. Still company produce
variety of products in surfing and provide best equipment’s and become leading company in
Australia from last so many years. As it always cope with advance technologies and even set
standards for wetsuit in future too (Galliers and Jarvenpaa, 2018). The mission of company is to
serve company's product at international level with best quality of equipment’s and raising its
customer base. The company has its own online store too, that help to buy products easily at low
prices. The unique strategy and having such a brand products which makes company different
from others.
2. Presenting what industry is it
Rip Curl is based upon retailer and private industry and consider different from other
because they produce a large quantity of products and sale them in order to maximizes profit.
The industry is particular target based and company who operate in this industry must manage its
inventory and controlling cost in order to gain high competitive advantage. Moreover, they do
not produce tangible products and suited for only short term accounts but for Rip Curl, they have
strong financial status with good inventory stock (Aversa, Cabantous and Haefliger, 2018).
Retailer stores expand its sales by opening new units into different cities in order to maximize its
profit as well as sales.
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3. Presenting Environment analysis
Economic: For retail industry, economic factors affect company's overall performance
such as the inflation and recession increases in Australia, it directly creates impact on Rip Curl
such that people are not going to spend more on shopping and as a result, there is decline in
company's overall financial situation (Ginter, Duncan and Swayne, 2018). In this way, instability
in economics of country will lead to decrease in industry and company's working performance.
Physical: As Rip Curl deals in surfing equipment, so it is most important factor that
affect company's performance such that it includes instability of land, water, plants and sudden
fluctuation in it will decreases company's economic situation. Even imbalance in natural
surrounding will also affect industry working presentation.
Socio- cultural: Sudden change in consumer’s preference will also affect company's
profitability and it has been analysed that in Australia, new generations demand is quite differ
from old ones and there is need to manage customer’s needs and produce those products which
are demanded by them. Alteration in socio- cultural factors directly creates negative impact on
company's brand image.
Global: Market analysis and investigation of competitors are considered in global
factors. Quoted company has some rivals due to which they offer low price products and
developing strategies in order to compete them will be helpful for Rip Curl to sustain its image in
market (Global environment, 2018).
Technological: Growth of digital technology increases number of retailer store in an
industry. To cope with latest technologies, it will be helpful to provide best experience to their
customers. Such that cloud computing and distributed intelligence will be going to have deep
impact on retail store. So there is need to analyse all new technologies and to adapt them will be
helpful for Rip Curl to uphold its stability in market.
Political/legal: These are government policies that affect retail industry's revenue and
profitability. Stability in political factors means better distribution supply chains and sales. And
these issue become hindrance to smooth business operations. Industry must imply labour laws
because it help to maintain low price to remain competitive in market. Instability in political and
legal factors will decline the growth and development of company (Yin, 2018).
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Demographic: Demographic change also creates deep impact on retail industry. It also
affect the popularity of products so it is necessary for Rip Curl to produce those products which
are demanded by customers and even change their customer service by providing best quality of
service.
4. Industry environment
Supply power: The bargaining power of supplier are weak in retailer industry and Rip
Curl experience weak force of suppliers because of large population of suppliers that creates
anaemic impact and having such a large availability of suppliers also makes difficult for
suppliers to impact on strategic growth of a listed company (Kamariotou and Kitsios, 2018). That
is why it has less supply power because of having large suppliers in Australia.
Buyer power: The bargaining power of customers is depend upon products that are
supplied by an industry. Even a strong buyer help to make it more competitive in a country and
can decreases profit potential for sellers too. Such that in retail sector, a customer can only
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Illustration 1: Industry environment
(Source: Porter's five force model, 2018)

pressurize sellers to low down prices and improve product quality in order to get better service
that makes strong competition in market.
Potential Entrants: Retail sector faces strong intensity of new entrant because they
easily achieve customer’s base by providing low price products to users. Moreover, small retailer
can enter in market easily and compete other brands on the basis of locality, low price offer,
comfort etc. These small concern in retailer stores have low cost of doing concern as compared
to larger firms, so this makes them strong to enter in market (Aldholay and et.al., 2018).
Substitute Products: Retail industry faces weak intensity of substitution because of
having anemic force on low variety and higher cost of substitutes. The combination of these will
lead to low threat of substitution in retail sector.
Rivalry among competitors: The degree of competitive rivalry is quite strong for retail
store because of having such a large number of retail market with varieties of firms, which lead
to strong competition (Archer-Brown and Kietzmann, 2018). For Rip Curl, it must keep growing
to sustain its position in retailer industry as they face tough competition with Costa, Hurley and
Vitamin Blue.
5. Competitive advantage of Rip Curl
There is no strategic group that need to be taken into account because Rip curl is surfing
company and there is not similar combinations of strategies. The company has rivals such as
Costa, Hurley and Vitamin Blue
Basis Hurley Costa Vitamin Blue Rip Curl
Offering
products
(Strength)
Offer
international
designer
swimwear and
eye wear and
clothes with good
quality and
affordable price.
Revenue- $525
million
Distribute
sunglasses,
prescription
lenses, goggles
footwear and
other important
accessories at
wholesale rates
(Arvidsson,
Holmström and
It is premium
water board
sports products
company offer
board bags, SUP
bag, Prone paddle
bags etc. on low
price.
Revenue- $484
million.
Offer variety of
swimwear
products that are
use in Surfing.
Revenue- $ 123
million.
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Lyytinen, 2014).
Revenue- $152
million.
Strategy Company follow
low price strategy
in order to
maintain
customer’s base.
It also follow low
and seasonal price
strategy that helps
to raise profit of a
company.
Firm cop up with
different digital
technology in
order to get
update with new
products and start
introducing them
at low price.
Follow low price
strategy that help
to attract wide
range of
customers.
Threat Threat of facing
tough competition
with Volcom and
Vitamin Blue
It face rivalry
with Rip Curl and
Burton.
Threat from
facing
competition with
Hurley.
Threat from
Hurley, Costa etc.
6. Opportunities and threats
Opportunities: Rip Curl has an opportunities to produce wet suit clothes that help to
raise its image in market of Australia and even it want to expand its business at global level to
increases profitability. The quality offered by quoted company is considered best as per
customer’s point of view and by coping up with latest technologies, a firm can easily raise
customers service (Robson, 2015). Recently, it deals with online business so it is quite necessary
for them to use and adapt different technologies, therefore it needs to grow its enterprise by
developing new price strategies.
Threats: The biggest threat which Rip Curl faces is having tough competition with
Costa, Vitamin Blue and Hurley. They all deal in retail sector by offering variety of products at
low rates. Another threat is changing preference of customer which will decline its profitability
and financial situation.
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PART 2
1. Firm's resources
Tangible: For Rip Curl, tangible resources are the location of building, suppliers, its
structure and machines which are used at a time of manufacturing (Galliers and Jarvenpaa,
2018). These are considered as a tangible resources because they are fixed and represents as an
opportunity to earn or maximize its profit through distribution of goods.
Intangible: These serve as a source for future economic benefit of a business and these
lack some physical form. As the company deal with swimwear products, its intangible assets will
be intellectual property and goodwill. It is quite difficult for a firm to quantify intangible assets
into financial term and even impossible to sell. For Rip Curl, software is also considered as an
intangible resources because it helps to collect data and keep company update about new trends.
2. Capabilities identification
The biggest strength of company is having best quality of products with strong
commitment of producing innovative products making it popular in Australia. Another capability
is continuously checking themselves while working with suppliers and by maintaining honesty
and integrity, which will make a quoted company brand surfing firm. It also offers its product at
an affordable price as compared to its rivals. Further, it also manages to work with good social
conformity in community and environment in which company's suppliers work (Aversa,
Cabantous and Haefliger, 2018). The company also has strong employment relation that helps to
guard rights that comes under national and international labour security laws. Even due to some
technical range of products, listed company offers diverse supply chain which is widely spread at
global level. Moreover, Rip Curl has its strong capabilities in its creativity and innovation of
products that also makes it different from other companies. It continuously adapt new, advance
technologies in order to renovate its products which are outdated to increases its sales. By using
strategic marketing tools, it also make its product popular in market and gain competitive
advantage in local area.
The biggest strength of quoted company is maintaining its customer’s relations. By
staying committed with user at its best offered price will help to deliver most creative products in
market and through this way, it build strong relation with people.
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3. Core competency analysis
Core competency analysis help Rip Curl to connect with wide range of resources and
technologies for production of goods as well as products. It is an internal skill which help
company to fulfil its mission and goals. These also help to identify company's competitive
advantage in market. In the context of Rip Curl, by using cost differentiation leadership strategy,
a company easily raise its customer base in particular area (Yin, 2018). As the company offered
best quality of products which shows its internal capability that help to raise competition and by
using strategy, it provide range of products with low price and unique material from their rivals.
Test: By Genrating more sales, Rip curl can easily define its core competency.
That makes its different from other company. Core competition can be analysed by fulfilling
three criteria such as:
 Rip Curl must supply potential approach to a wide range of market.
 Provide best quality of products with low range of price.
 Be unique with offering products.
By using this, listed company can easily develop best variety of products and even with
specific promotional tools, they can increases its sales. Generally many companies do not have
unique products to offer so they have to compete related price in order remain operational in
market scene. Therefore, company has to create some unique selling points in order to offer
additional value to their customers.
4. Suitable information system solution
Information system is a most effective and productive source which helps to connect
needs of a copmpany in core specify manner. Overall, it is very much helpful to define the
business goals in more effective manner. There are so many information system that helps Rip
Curl for ensuring productive goals, such as marketig and sales information, production,
accounting and finance and human resources (Aldholay and et.al., 2018).
Marketing information : It is the most crucial and productive information that connects
and helps the company to meet the planning and selling objectives. This information system
helps to meet the needs of customers and objectives of organisation. Marketing information
system support decision making regarding the marketing mix. Marketing information system
supports making regarding the marketing mix. Such as product information, price, place,
promotion.
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Manufacturing Information system: Another information system which is productive
or helpful is Manufacturing information system. It is the most competitive and crucial data for
accomplishing task into productive manner (Archer-Brown and Kietzmann, 2018).
Financial information system : it helps company to fullfil required needs of a
company. It helps to track the records of money and stock. It ensuring that its available resources
are properlly used and that the organisation is financially fit. This information system is helpful
to make financial forecasting to predicting the inflows of funds into the company.
5. Presenting proposed system and recommendations
Proposed System: It is a process that take place in secured form between client and
network in order to transfer data with network to evaluate company's performance. For Rip Curl,
it is quite necessary to use this system into working area in order to secure all data of their
employees as well as their inventory (Robson, 2015). It helps to develop communication
between customers and users in order to provide best results. Smart Analytic is an tool that help
to measure company's working performance in more effective manner. And using this technique
user can easily create new KPI's dashboard to identify what is going on in a business and further
it help to improve company's revenue with cost reduction strategy.
Recommendations:
 It is advised to Rip Curl to maintain low price strategy in order to sustaining its customer
base and to cope up with different latest technologies to increases its profitability.
 It is necessary for a company to keep updating related to new swimwear products and
keep coordinating with suppliers to know customers demand,.
 Quoted company must be developing new strategies related to improvement of
company's performance and for that reason, can also apply total quality management
technique to identify product's quality. Beside this, firm also take feedback from
customers related to their offered products and services so that they easily know about
their negative points.
 After taking feedback, it is their duty to take some initiatives to correct those negative
aspect.
 By improving company's distribution channel and suppliers, Rip Curl also provide its
products to wide range of customers and as a result it help to raise its productivity as well
as profitability.
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CONCLUSION
By summing up above report, it has been concluded that, strategic marketing planning
plays an important role in Rip Curl. As the company operates in retail sector and is affected by
different external factors that affect companies overall performance. Report cover environmental
analysis of a company as well as industry and further it describe opportunities, threats and
internal capabilities with suitable information system and proposed information system. So it
has been concluded that quoted company also have rivals such as Hurly and Costa and in order
to maintain competitive advantages, it has to provide its products at low rate. Report also present
its tangible and intangible resources and by using cost differentiation leadership strategy, it easily
meet its all defined objectives that help to move further level of success.
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REFERENCES
Books and Journal
Aldholay, A. H. and et.al., 2018. The role of transformational leadership as a mediating variable
in DeLone and McLean information system success model: The context of online
learning usage in Yemen. Telematics and Informatics. 35(5). pp.1421-1437.
Archer-Brown, C. and Kietzmann, J., 2018. Strategic knowledge management and enterprise
social media. Journal of Knowledge Management.
Arvidsson, V., Holmström, J. and Lyytinen, K., 2014. Information systems use as strategy
practice: A multi-dimensional view of strategic information system implementation and
use. The Journal of Strategic Information Systems. 23(1). pp.45-61.
Aversa, P., Cabantous, L. and Haefliger, S., 2018. When decision support systems fail: Insights
for strategic information systems from Formula 1. The Journal of Strategic Information
Systems.
Galliers, R. D. and Jarvenpaa, S. L., 2018. Welcome to the first issue of Volume 27 of The
Journal of Strategic Information Systems.
Ginter, P. M., Duncan, W. J. and Swayne, L. E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Kamariotou, M. and Kitsios, F., 2018. Strategic Information Systems Planning. In Encyclopedia
of Information Science and Technology, Fourth Edition (pp. 912-922). IGI Global.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Yin, C. Y., 2018. Measuring organizational impacts by integrating competitive intelligence into
executive information system. Journal of Intelligent Manufacturing. 29(3). pp.533-547.
Online
Global environment. 2018. [Online]. Available through: <https://study.com/academy/lesson/the-
global-environment-definition-importance.html>.