competitive forces model and knowledge management jason c. h. chen, ph.d. professor of mis school of...
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Competitive Forces Model and Knowledge Management
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99223
Competitive Force ModelNew entrants
Suppliers Buyers
Substitutes
Industry competitors
Intensity of rivalry
Bargaining powerof suppliers
Bargaining powerof buyers
Threat of substitutes
Threat of new entrants
Entry barriersEconomies of scaleProprietary product differencesBrand identitySwitching costCapital requirementsAccess to distributionGovernment policyExpected retaliation
Determinants of supplier powerImportance of volume to supplierPresence of substitute inputsSwitching cost ...
Determinants of buyer powerBargaining Leverage Price SensitivityBuyer volume Brand identitySwitching cost Product differences Buyer information Buyer profits ….
Determinants of substitution threatRelative price/performance of substitutesSwitching cost…
Rivalry DeterminantsIndustry growthBrand identitySwitching cost….
(Source: Porter, 1980)
FIVE COMPETITIVE FORCES MODEL
THE FIRMTRADITIONAL COMPETITORS
NEW MARKET ENTRANTS
SUPPLIERS
SUBSTITUTE PRODUCTS & SERVICES
CUSTOMERS
Threats
Bargaining power
N
FIVE COMPETITIVE FORCES MODEL
THE FIRMTRADITIONAL COMPETITORS
NEW MARKET ENTRANTS
SUPPLIERS
SUBSTITUTE PRODUCTS & SERVICES
CUSTOMERS
Threats
Bargaining power
N
Internal Forces1.customer focus2.communication3.core compentencies4.complexity5.quality
Source: Knowledge: the key to organisational survival, Raeside and Walker, the TQM Magazine, 2001
Competitive Forces
• Knowledge management is the main competitive force.-- Quintas et al., 1997
Source: Knowledge: the key to organisational survival, Raeside and Walker, the TQM Magazine, 2001, p.157
Organizations should stratify the management of customers based on principles of quality (satisfaction), cost/profit, and future profitability potential.
Competitive Forces (cont.)
• The success does not necessarily go to the firms that know the most, but to the firms that can make the best use of what they know and know what is strategically most important to the firm and to the society.
• Therefore, firms should become “learning organizations” to maximize their knowledge base.
Enablers Results
Innovation and Learning
IT &Resource
PeopleResults
CustomerResults
SocietyResults
Content/infrastructure
Key
Per
f or m
a nce
Re s
ult
s
Lea
der
ship
Pro
cess
es
People
Policy &Strategy
Partnership&
Communities
Modified European Quality Model: e-Learning
Source: Knowledge: the key to organizational survival, Raeside and Walker, The TQM Magazine