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Issues Highlighted By Porter Analysis And How To Address Them
Question
Transport is a heavy truck manufacturer. This is a very competitive business. Profit margins are always under pressure. A Michael Porter analysis of the business has identified existing competitors, the threat of new entrants, threat of substitute products such as rail and air freight, and the bargaining powers of suppliers and buyers as competitive forces.
Transport has invited consultants to advise them on using IT to respond to the five forces. Some of the potential IT enabled areas of opportunity are improved cost performance internally, retaining and expending market share by providing Customer Relationship Management for Transport and for truck fleet owners, increasing switching costs by providing truck fleet managers with tools to improve fleet and driver productivity, and providing driver-owner customer with tools that enable them to achieve greater productivity also increasing switching costs. You are the consultants. Make recommendations in this role. What approach should be taken in selecting, prioritizing and implementing these proposed and possibly other initiatives.
Summary
The question belongs to Corporate Strategy and it discusses about the utilization of IT for addressing Porter’s analysis of a transport business. Introduction of IT into transport business needs to address various areas such as improved cost performance, retaining and expanding market share, switching costs, etc.
Total Word Count 406
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