| Force | Example | Strength | Response |
| Bargaining Power of Customers | Clients looking to negotiate pricing on services or hardware. | Medium | Offering discounts for long termed customers, or on bulk orders of supplies, regularly scheduled orders etc. |
| Bargaining Power of Suppliers | IT Supplies and Software are developed by large companies like Apple, Microsoft, Dell and Lenovo and they all look to have competitive pricing while also turning a profit. | Weak | Extended relationships with these tech suppliers comes with benefits including discounted pricing. This can also be avoided by purchasing in bulk. In the worst case scenario, as long as the hardware is comparable in functionality and quality, SHI can turn to other providers. |
| Threat of Substitutions | Competition (Amazon web Services, CDW) | Medium | Having competitive pricing as well as offering quality service above and beyond the competition is the best bet to fend them off. |
| Threat of New Entrants | Artificial Intelligence Development | Medium | Although AI is still in rudimentary phases, as time goes on and the technology improves, it would be wise of SHI to invest in their own AI assistance. |
| Rivalry | CDW and Deloitte are two direct competitors with SHI, especially on an international level. | High | Competition in general is always going to be something to keep in mind in any industry, but in distinct markets such as IT, developing a genuine rivalry with these companies means SHI must be on top of their game, and making all the proper steps to remain competitive amongst these other companies. |
According to Porter, a company may choose to use one of the four following competitive strategies:
1. Being a cost leader in their industry 2. Being a cost leader in a segment 3. Differentiating their products and services in the industry 4. Differentiating their products and services in a segment.
See the figure below:
SHI operates through a comprehensive value chain with many primary activities. One essential business process within SHI's structure is its sales process. This process involves identifying potential clients, understanding their needs, presenting suitable IT solutions, negotiating terms, and ultimately closing deals. Sales representatives play a crucial role in this process by creating relationships with clients, providing product knowledge, and ensuring customer satisfaction to the best of their ability. SHI employs sales analytics and CRM systems to track sales performance, identify the needs to keep up with market trends to help with profitability.
One of SHI's dynamic business processes is within its marketing strategy. Shi marketing process involves a continuous cycle of planning and executing the promotional activities to reach their target audience. They also create various channels such as digital marketing, events, and advertising, SHI strives to increase brand awareness, generate leads, and drive customer engagement. In this dynamic environment, market research, data analytics, and feedback mechanisms are important for understanding consumer behavior. Through Marketing approaches, SHI can adapt quickly to changing market dynamics, seize emerging opportunities, and sustain long-term growth.
Value Chain and Business Processes
Inbound Logistics: Information systems can optimize supply chain management, ensuring timely procurement of raw materials and components while minimizing costs through efficient inventory management systems.
Operations: Automation and data analytics facilitated by information systems can enhance manufacturing processes, improving efficiency, quality control, and reducing production lead times.
Outbound Logistics: Information systems can streamline distribution channels, enabling SHI Technology to deliver products to customers promptly while optimizing transportation routes and minimizing shipping costs.
Marketing and Sales: Information systems support targeted marketing campaigns through customer segmentation, personalized messaging, and performance analytics to optimize marketing ROI and sales effectiveness.
Service: Information systems enable effective customer support and after-sales service by providing self-service portals, ticketing systems, and predictive maintenance capabilities, enhancing customer satisfaction and loyalty.
How Information Systems Support the Strategy
Information systems serve as the backbone for SHI Technology's strategic initiatives by providing real-time data and insights that drive decision-making across all levels of the organization. They use information systems like Microsoft teams as internal communication, which allows SHI to communicate internally and store information like date and important files. Microsoft Teams allows for group channels to be created and allows who has access to which files. Also, it is easy to manage projects internally as managers can assign taskers and keep track of taskers with ease. It is easy to have internal meetings and presentations through Microsoft Teams. One of the benefits of Microsoft Teams is that SHI also has access to Microsoft Office as well. All this helps in enabling efficient product design and development processes.
In order for SHI technologies to be able to communicate, they use platforms such as YouTube, LinkedIn and Instagram. Having social media platforms allow for the company to be able to market their products and services, as well as giving them a way to be able to seek and recruit talents. SHI Technologies can use their platforms to showcase the company's culture, values, and career opportunities. Social media also allows companies to monitor and analyze the activities of their competitors. Overall, embracing social media is important for SHI Technologies as it helps them stay up to date in today’s digital landscape.
SHI technologies use information systems like Microsoft Dynamics (CRM, AX) for their customer and sales management. This allows for better communication and collaboration. Teams can collaborate on leads and share insights amongst each other. It’s also very customizable to SHI Technologies specific needs. Custom fields, automating workflows, or even integrating third-party applications are all ways that Microsoft Dynamics serves to benefit and support their strategy.
Competitive Advantage
Information systems provide a competitive advantage to companies in many different ways. These systems help to collect and process data for SHI technologies to be able to use the data to provide its customers with better processes and services. Systems are streamlined to create less errors and provide a more efficient experience to their consumers. Shi Technologies is able to provide their customers with customized services based on the information collected and analyze. With their Customer Innovation Center, they are able to work with their customers to customize the service they wish to receive. This system helps to identify the needed technology quickly and at the lowest cost possible.
Another competitive advantage that SHI technologies is able to provide to its customers is the accessibility to their partners. Their IT services need to be able to work in unison with multiple different products in order to be competitive. To optimize their services, they have partnered with multiple different companies such as Microsoft, Google, Logitech, Hewlett Packard, HP, and intel just to name a few. Their partnership with these companies helps maintain their ability to be able to integrate and work cohesively with these products. It also gives them access to information about these products to be able to easily ensure their services work properly with the products they have. These partnerships can also provide SHI Technology’s customers with access to deals on purchasing products provided from these partners. Being able to provide access to all these opportunities provides SHI Technology with a competitive advantage over other IT companies they compete with.
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