Organizations and

Information Systems
Learning Outcomes
By the end of this lesson, you will be able to:
o Summarize Porter’s five forces and explain the role that information systems to
develop competitive strategies
o Explain the value chain model
oDescribe concepts of synergies, core competencies and network economics.
Porter’s
competitive
forces model
Competitive Strategies & IS

Low-cost Product Focus on Strengthen

customer and
leadership differentiation market niche supplier intimacy
• Efficient • Mass • One-to-one • Switching
customer customization marketing costs
response
system (ECR)
Competitive Strategies & IS
Competitive Strategies & IS
Value
chain
model
Value
chain
model
Synergies, core competencies and
network-based strategies

How can information systems promote synergies and core competencies

and create competitive advantage?

How do business benefit from network effects?