USA: +1(669)289-8683 
Sign in
Choose either
Harley-Davidson or Microsoft to analyze the following questions;
1. Using the Porter’s 5 Forces Model, give a brief overview of the industry in which Harley-Davidson or Microsoft operates. 2. State which competitive strategy Harley-Davidson or Microsoft is using. 3. Give examples of how the company is utilizing Information Systems to support this strategy.
I also attached examples of how to do this homework. So, just do like these patterns.
“ONLY 600 – 800 WORDS”
1. Using the Porter’s 5 Forces Model, give a brief overview of the industry in which Harley-Davidson or Microsoft operates.
2. State which competitive strategy Harley-Davidson or Microsoft is using.
3. Give examples of how the company is utilizing Information Systems to support this strategy.
EXAMPLE 1
Using Porter’s Five Forces Model, here is my analysis of Dunkin Donuts:
Traditional Competitors: Dunkin Donuts’ business mostly revolves around coffee and baked goods, including bagels, breakfast sandwiches, over 50 varieties of donuts, and a plethora of coffee beverages. Traditional competitors for the Dunkin Donuts franchise are predominately Starbucks and Krispy Kreme; Starbucks because of coffee, and Krispy Kreme because of donuts. However, I would also include other similar franchise stores like McDonalds and Panera.
New Market Entrants: There are relatively low entry barriers into the coffee and baked goods industry as costs for goods are low and no specialized knowledge or experience is necessarily required to open up a Dunkin Donuts franchise. If a member of the Dunkin Donuts “family” (someone that already has relations in the Dunkin Donuts franchise) wishes to open up a store, they simply follow the franchise process outlined on Dunkin Donuts website. The one caveat is that it is very difficult for someone that is not already in the “family” to open up their own Dunkin Donuts franchise because growth has been successful thus far and Dunkin Donuts does not want to expand too fast resulting in poor execution. I say this to highlight the difference between having low entry barriers for the industry versus high entry barriers for someone actually trying to start their own Dunkin Donuts franchise.
Outside of entry barriers, Dunkin Donuts continually expands into new markets, whether through new products, including chicken sandwiches or gluten free goods, or from expansion into new locations, including western United States or even international locations like countries in Europe. Dunkin Donuts is always looking to capitalize with its already successful franchise.
Substitute Products or Services: Unfortunately for Dunkin Donuts, almost all of their products can be considered substitute products because similar products can be found in competitor stores, including their bagels, breakfast sandwiches, and coffee. This makes it very difficult for Dunkin Donuts to control their prices, meaning profit margins are low compared to other industries in which companies can charge premiums for their products that are unlike anything else.
Customers: Dunkin Donuts’ customers have the ability to easily switch to a competitor’s product. As a result, Dunkin Donuts’ relies on its lower prices over competing stores like Starbucks to attract and retain its customers. Advantageous to Dunkin Donuts, however, is that over 80% of Americans above age 18 drink coffee, and 50% of American adults drink it every day. There is a reason Dunkin Donuts changed their slogan in 2006 to “American runs on Dunkin.”
Suppliers: Because of the industry, Dunkin Donuts is able to use, if needed, a vast amount of different suppliers. There is an abundance of egg, dairy, and coffee bean suppliers, allowing Dunkin Donuts to pick and choose the ones that offer the highest quality for the lowest price.
Regarding the four competitive strategies outlined in the textbook, I would argue that Dunkin Donuts mainly focuses on the low-cost leadership strategy. Dunkin Donuts cannot really claim they employ the product differentiation strategy as its main competitor, Starbucks, offers higher quality products. There are also not a whole lot of unique products that can only be found at a Dunkin Donuts store. Along with product differentiation, Dunkin Donuts does not really focus on market niches either as, again, they do not sell any products that could be considered in its own market. However, Dunkin Donuts can (and most likely does) take steps to increase supplier intimacy in order to provide low prices. Adversely, I do not feel as though Dunkin Donuts really takes initiative to strengthen customer intimacy as their model is geared toward providing quick interactions with their guests rather than provide a high level of personal service or relaxing atmosphere as provided by Starbucks.
Dunkin Donuts utilizes Information Systems to support its low-cost leadership strategy just like a lot of modern firms in today’s world. Dunkin Donuts depends on Information Systems to keep up-to-date records for accounting, tracking, packaging, assembly lines, and production. These Information Systems increase productivity and decrease cost, ultimately allowing Dunkin Donuts to offer their products at lower prices compared to its competitors. Dunkin Donuts also offers Information Systems that inevitably attract more customers to the store, which increases demand, and with higher demand comes higher volume, which ultimately leads to lower unit costs. The Information Systems to which I am referring is their ability to provide mobile applications (iPhone, Android, etc.) that allow customers to order coffee, donuts, and baked goods directly from their phones.
http://www.bloomberg.com/news/2013-03-22/coffee-consumption-increases-in-u-s-association-survey-shows.html
http://www.statisticbrain.com/coffee-drinking-statistics/
http://www.dunkinfranchising.com/franchisee/en.html
https://sites.google.com/site/quickservicecoffeei/business-strategy
http://team1mrdunkin.blogspot.com/
EXAMPLE 2
Canobie Lake Park in Salem New Hampshire is a family orientated amusement park with a variety of rides, shows, games and activities. The park opened in the early 1900s with a single ride, the Flying Horses. This ride is now called the Carrousel, and is the centerpiece of the park. Canobie Lake has expanded its products and services over the years, and is now a major attraction in the New England area.
Porter’s 5 Forces Model examines the competitive forces that impact a company’s competitive advantage. These five forces are traditional competitors, new market entrants, substitute products, customers, and suppliers.
Canobie Lake Park’s traditional competitors are those found locally because in their early years, travel was not as accessible as it is today. There are a number of small amusement parks in the area that have been direct competitors to Canobie. The New England shore is home to many of these including the Salisbury Beach Amusement Center, Old Orchard Beach and York’s Wild Animal Kingdom. The mountains of New Hampshire are host Santa’s Village, Storyland and Funworld.
New market entrants have also provided strong competition to Canobie Lake Park. Over the years water parks have become a popular family destination in the summer months. Water Country, A Whale’s Tail and even indoor facilities like Coco Beach have attracted many guests in the area. A second consideration for new market entrants would be existing parks that have expanded into Canobie Lake’s territory. A few years ago, the closest Six Flags to the area was in New Jersey, but they now have a location in Massachusetts.
Substitute products and services can eat away at a business’s customer base. Water parks are a refreshing alternative on a hot summer day to standing in line for a ride in the heat. Indoor family activities such as arcades, bowling , etc can also be alternatives to amusement parks.
Customers that frequent Canobie Lake do tend to be somewhat local to area, but many are loyal customers who visit the park every year.
Canobie Lake Park utilizes a combination of strategies to remain competitive. They strive to be low cost, offering free parking and single price daily tickets that include all the rides and events in the park. They also use product differentiation. The have incorporated features from a variety of attractions into one park. They offer rides, games, a water park, arcades all in one location.
Suppliers in this industry can be difficult to assess. The food service within Canobie Lake is outsourced to a food service group, so the supplies related to food and paper products are not handled directly by the part. Parts needed to maintain and repair the rides would be needed, but suppliers in that field would most likely be limited since the industry is fairly small.
Although Canobie Lake Park is a destination activity and relies on the physical presence of its customers, information technology appears to ply a large role in their competitive success. Canobie Lake hosts its own website that allows customers the opportunity to purchase tickets in advance of their visit. The site also has a “plan a trip” feature that can help arrange travel to the park from long distances. It assists with hotel accommodations,
ticket purchasing, and group events. Information technology is also used in the running and maintenance of the rides. Computers monitor the rides and provide quick response for any mechanical issues. Computer programs are used to design the rides, and enhance the safety to customers.
http://www.nhtourguide.com/things_to_do_nh/nh_amusement_parks.htm
http://www.iaapa.org/safety-and-advocacy/safety/amusement-ride-safety/design-techology
