COMM 226 Innovation and Strategy Chitu Okoli Associate Professor in Business Technology Management John Molson School of Business, Concordia University, Montréal

Porter’s five forces of the structure of industry competition https://www.youtube.com/watch?v=mYF2_FBCvXw

Source: http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1

Principles of Competitive Advantage Q6 How do information systems provide competitive advantage? Figure 3-8 Principles of Competitive Advantage Which of these are pure commerce perspectives, and which are value/conscientious commerce?

Example of the five forces: University textbook industry How do the five forces apply to the university textbook industry? How do they explain the pricing and availability of textbooks?

Porter’s Four Competitive Strategies Figure 3-6 Porter’s Four Competitive Strategies

Example of the five forces: IT and the university textbook industry How can textbook publishers use IT to manipulate the five forces in their favour?

Sustained competitive advantage Most sources of competitive advantage are temporary, not sustained To be sustained, the source of advantage must be: valuable, rare, hard to imitate and hard to replace IT on its own does not qualify—competitors can acquire the same IT

Sustained competitive advantage through valuable business processes A business process is the set of activities involved in carrying out a function Effective businesses have the best processes Excellent processes can be a source of competitive advantage (valuable, rare, hard to imitate and hard to replace) IT can be used as an essential element in implementing excellent processes—this is the primary potential for IT in attaining sustained competitive advantage

Sources Most of the slides are adapted from COMM 226 Business Technology Management by David M. Kroenke, Andrew Gemino, Peter Tingling, and Earl H. McKinney, Jr. 2nd Custom Edition for Concordia University (2014) published by Pearson Canada. ISBN 13: 978-1-269-96956-7 Other sources are noted on the slides themselves