Apple Inc. is known for its state-of-the-art designs for products such as the iPhone, but most are unaware that Apple has used technology to streamline its supply chain management and operational systems to provide competitive pricing. This use of technology has allowed the company to under price its competitors and yet maintain a 25 percent margin on their products. The use of IT has provided Apple with a strategic and competitive position which most of their competitors find difficult to match or exceed.
Using your company or a real-world example from your research, analyze how information systems affect the firm's strategic and competitive position.
Explain how information technology:
- Impacts competitive rivalry, such as pricing, promotion, and distribution
- Enables or dissuades new entrants
- Enables customers to achieve greater bargaining power
- Enables suppliers to gain more bargaining power
- Gives rise to substitute products or services that threaten the existing market.