CASE STUDY
Class: ITM 200- Business Information Systems
Assignment: Case Study 1 (Chapter 3)
Subject: Business Process Management
Company: Bosu Fitness
Industry: Exercise Equipment Industry
Author:
Date:
Overview
The Bosu balance trainer was invented in 1999 by David Wreck the name Bosu means “Both Sides Utilized” because this exercise equipment has two sides. The two sides of the exercise equipment can be used for training with any kind of work out fitness. Bosu reflects a philosophy in athletic conditioning that focuses on balance; balance is the foundation on which all other performance components are built.
Bosu are known to have a good reputation among these market leaders and are delivering significant benefits
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| Threat of new entrants | Better stability in the balls. | Professional trainers. | Rivalry | Bow Flex | No revenue service |
2.) Visit www.bosu.com. What appears to be Bosu’s competitive strategy? Explain your answer. If Bosu would like to have a competitive strategy they must have goals, objectives, culture and activities within the company must be consistent with the organizations strategy. I have retained information from Bosu website and there are many different strategies Bosu can use for Example: providing a wide range of high quality equipment, providing the best equipment, providing the newest and fastest equipment, fast and helpful customer service. All these aspects will help facilitate their organization competitive strategy. 3.) Explain the nature of the five primary value chain activities for Bosu.
Primary Activity Description Marketing and sales | Inducing customers to purchase the Bosu equipment to do so to exercise. | In-bound logistics | Receiving and storing their equipment. | Operations | Transforming input into their equipment. | Out-bound logistics | Physically distributing equipment to their buyers. | Service | Assisting customer’s on how to use the equipment. |
4.) Review the principles of competitive advantage in Figure 3-8. What information systems can Bosu create to enhance its product or differentiate it from existing and
Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry
see if you can identify additional capabilities and core competencies. Do you think the core competencies mentioned in the case and/or the ones you found are valuable, rare, difficult to imitate, and nonsubstitutable and as such, are also competitive advantages? Why or why not?
Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice
Portray the competitive strategy of the (competing) firms using the grid of “strategic target” and “source of competitive advantage”.
There are two different types of competitive advantage: low cost and differentiation. We will develop them in this part I.
The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.
A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
A successful competitive strategy focus on creating value to customers, by efficiently use and integrate of these components.
1. What is competitive advantage, and how does it relate to a company’s business model?
Furthermore, this particular topic helps the business world in so many ways. Competitiveness, Strategy, and Productivity are the three important characteristics of any business. Competitiveness in this chapter refers to the effectiveness of an organization in the marketplace similar to the other operations that offer familiar products or services. Strategy is known to denote a particular plan for achieving
Q:Large numbers of companies are using their information systems as a strategic tool to improve their competitive advantage. Choose one of these companies (Toyota or Wal-Mart) and prepare an essay of 1500 words on: a) how information systems are used strategically by the company to gain a competitive advantage b) discuss if it is possible for the company to maintain this advantage in the future.
Competitive strategy is the moves and methods that the firm has taken and is taking to appeal buyers, improve its market position, and to endure competitive pressures. The strategy is about what a firm’s capability to try to knock off competitors and attain competitive advantage, which can be offensive or defensive. There are three approaches to competitive strategy, which are low-cost leadership strategy where struggling to be the overall low-cost manufacturer in the in industry. Moreover, pursuing to distinguish one’s product offering from competitors (differentiation strategy), and the last one is focus or niche strategy where aiming on thin portion of the market rather than the whole market (Porter, 1998).
Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).
What is a competitive advantage for the company? How can the management use it? Make SWOT analysis for the company.