NAME Md.

Mehedi Hasan Mohit

ID 2020210004055
Sec 1
Course MIS & Decision Making Technique
Code 522

(A)
E-commerce is used by consumers and businesses to exchange good and services via the internet,
according to sell online. E-commerce include to business to business and business to consumer.

The competitive forces that my company might face when it will be operational to the five forces
model was developed by Professor Michael Porter of the Harvard Business School in his book The
Competitive Strategy Techniques for Analyzing Industries and Competitors (1980).
The five forces determine industry profitability because they influence the prices, costs and
required investment in the industry. The five forces are:
 NAME Md. Mehedi Hasan Mohit
ID 2020210004055
Sec 1

Rivalry of Competitors: Competitors in a given company drive each other and try to be superior
market partners. A higher share of the market is thought to lead to higher profits. When
competition intensifies / the company may face severe price wars in which companies compete
against each other on the basis of price cuts.
The competition is marked by various competitive strategies. These are:

 As the number of contestants increases, so does the competition.

 As the demand for the product gradually increases, so does the competition.
 Competition intensifies when industry conditions encourage competitors to lower prices.
 Competition is stronger when customers spend less to change brands.
 Competition intensifies when one or more competitors are dissatisfied with their market
position and take other measures to win the market share battle.
 Competition intensifies when it costs more to get out of business than to stay in the
company.
 Competition becomes more volatile as competitors diversify their goals, strategies,
resources, and so on.
 Competition increases when strong companies from outside the company acquire weak
companies in the company and start aggressive campaigns to make the acquired
companies profitable.
For example, Giant companies like Amazon and Daraz have taken over the online market. So
this is a big threat for newcomers. So in order to sell or market such products in a new
company, you have to capture the market by selling the products of good quality and at a
lower price.
Threat of Substitutes Goods: Alternative products can play on spill-sport for the benefit of the
company. If the alternative product offers a price or performance advantage, the organization
must decide whether to accept the alternative together or slowly.
The major factors that determine the strength of the competition from substitutes are;

 the attractiveness of the prices of substitutes;

 buyers’ satisfaction with the substitutes in terms of quality and other features; and
 The easiness to switch to substitutes.
 NAME Md. Mehedi Hasan Mohit
ID 2020210004055
Sec 1

I will keep a variety of products for my company so that the buyer can take one product instead
of another.
For example, Coffee is a substitute for tea or alternative bottled water juices and soft drinks etc.
Threat of New Entry: The threat of new entrants refers to the risk of new entry by potential
competitors. A potential entrant is one who eyes the given company anticipating higher returns.
The entrant may bring new technology or other resources to the company. In the marketplace,
some competitors are already operating their businesses. They are called existing competitors. I
have to wonder if the newcomers will be able to come. If they want to come or they can, then
they have to follow the path of how they work with the product.
For example, in car manufacturing the substantive investment in the plant and the economies of
scale enjoyed by the entrenched companies ensured that in the U.S. market there were no major
newcomers till the advent of the Japanese. When entry barriers are low, it is easy for potential
competitors to enter the industry.
Bargaining Power of Customer: The buyers either enforce a better price or better quality
depending on their competitive position. Buyers of products may be ultimate consumers or even
the intermediaries such as dealers, wholesalers, and retailers. The buyer’s bargaining power
becomes high when suppliers have to depend on them for some reason. On the other hand, their
bargaining power is weak when suppliers/sellers are capable to raise prices.
Buyer’s bargaining power is highest when:

 The supply company is composed of many small companies and the buyers are few in
number as well as they are large.
 Buyers purchase in large quantities.
 The supply company depends on the buyers for a large percentage of its total orders.
 Buyers can switch orders between supply companies at a low cost.
For example, a customer wants to buy a product only when the supplier gives a discount. Big
companies are capturing the market through discounts. So new companies have to capture the
market by discounting their products.
 NAME Md. Mehedi Hasan Mohit
ID 2020210004055
Sec 1
Bargaining Power of Suppliers: Suppliers play an important role in determining the profitability
of the industry. Has the ability to control the cost / quality of suppliers' inputs. A supplier can
increase the purchasing power of the buyer. The supplier depends on the price of his product,
how many products a company will sell and how much profit it will make.
For example, in the PC market, Intel is the most powerful because of its unique position in
producing microprocessor. Intel is an example of a powerful supplier to computer manufacturers.
Intel’s chips power about 80 percent of personal computers. Intel enjoys a size advantage as well
as the leadership advantage over other, smaller manufacturers. Intel, by virtue of its size, can
determine the price and terms of payment advantageous to it.

(B)
The various competitive forces a business might encounter, as well as the competitive strategies
that can be adopted to counteract such forces. So competitive strategies IT strategies can be
adopted to deal with the forces.
Competitive strategy is a long-term action plan of a company which is directed to gain
competitive advantage over its rivals after evaluating their strengths, weaknesses, opportunities
and threats in the industry and compare it with your own. There are Competitive strategy-
Cost Leadership Strategy: The cost leadership means to become low cost producer or provider
in the industry, any large-scale business which can provide and manufacture products at low cost
by attaining economies of scale.
Suppose Micromax smart mobiles are selling good quality products at low prices while premium
phones like Apple or Samsung are selling at higher prices.
For example, Similar Company are Walton phones, Symphony phones, Toyota cars etc. do such
business.
Differentiation Strategy: A differentiation strategy is an approach businesses develop by
providing customers with something unique, different and distinct from items their competitors
may offer in the marketplace.
Suppose Apple offers phone which are different from other phone brands. Apple phone are more
technologically advanced, have better features and have got personalized services.
For example, Similar Company are BMW cars, Audi Cars, Samsung phone etc.
 NAME Md. Mehedi Hasan Mohit
ID 2020210004055
Sec 1

Innovation Strategy: Finding new ways of doing business. This strategy may involve developing
unique products and services or entering unique markets or market niches.
Suppose Amazon.com is offering free delivery to those premium buyers. Or, Federal Express has
introduced a new packaging system.
For example, Similar Company are Charles Schwab & Co., Alibab.com, Mi phone etc.
Growth Strategies: Significantly expanding a company’s capacity to produce goods and services,
expanding into global markets, diversifying into new products and services, or integrating into
related products and services.
Coca-Cola launched Diet Coke. They are developing products by diet coke.
For example, Unilever introduced Sunsilk shampoo, Hasbro (Toy Company) launched baby care
products etc.
Alliance Strategies: A strategic alliance is an arrangement between two companies that have
decided to share resources to undertake a specific, mutually beneficial project.
The deal between Starbucks and Barnes&Noble is a classic example of a strategic alliance.
Starbucks brews the coffee. Barnes&Noble stocks the books. Both companies do what they do
best while sharing the costs of space to the benefit of both companies.
For example, similar company are Red Bull and GoPro. , Uber and Spotify etc. do such business.

(C)
One of the biggest challenges companies face today is digital transformation. One of the most
important parts of this process is the methodical transition towards an agile mode.
Agile is changing the way a lot of companies work and allowing them to get better results. The
main reason for this improvement is that Agile focuses on the areas that bring value to the
company. In order to achieve it you must have patience, persistence and courage.
An agile company must use four basic strategies_

 The business must ensure that customers perceive the products or services of an agile
company as solutions to their individual problems.
 NAME Md. Mehedi Hasan Mohit
ID 2020210004055
Sec 1

 An agile company cooperates with customers, suppliers, other companies, and even with
its competitors.
 An agile company cooperates with customers, suppliers, other companies, and even with
its competitors. This cooperation allows a business to bring products to market as rapidly
and cost-effectively as possible, no matter where resources are located or who owns
them.
 An agile company organizes so that it thrives on change and uncertainty. It uses flexible
organizational structures keyed to the requirements of different and constantly changing
customer opportunities.
 An agile company leverages the impact of its people and the knowledge they possess.
Those four things turned my business from a performance agile company.
Ability to leverage assets, knowledge, and competencies of suppliers, distributors, contract
manufacturers, and logistics providers in the exploration and exploitation of innovation
opportunities. Technologies facilitating interfirm collaboration, such as collaborative platforms
and portals, supply chain systems.
For example, Yahoo! has accomplished a significant transformation of its service from a search
engine into a portal by initiating numerous partnerships to provide content and other media-
related services from its Web site.