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In: Computer Science

Regarding Barriers to Entry (Porter’s 5 Forces): how can a new business use Information Systems to...

Regarding Barriers to Entry (Porter’s 5 Forces): how can a new business use Information Systems to help overcome Barriers to Entry? Please list and explain at least 2 examples.

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Expert Solution

Following are ways in which we can use information systems in order to overcome barriers to entry.

  1. We can have low-cost leadership by having a low operational cost. for example With the help of the information system we can directly link the customer with the production and supply chain. This will eventually reduce the distribution cost and thus will reduce the overall cost.
  2. We can provide product differentiation to our customers by providing new products or by providing a greater change in the currently existing product and services. For example, this was done by Land, in which they changed their currently existing product for the good of their customers and hence did something differently.
  3. We can use the information system to find a specific market which is fit and is best for our product. Then we need to serve them better in order to maintain them with us, better than our competitors could do.

Thus above are the ways in which we can use information systems for the good.

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