3 Value Chain Model - Supply Chain

My Name:Jesus Hernando Ospina Pava.
My Industry: Technology
My Product or Company name: Mobile Applications
Concepts Aplication:
- This business is based on sales through Internet multimedia applications

such as mobile phones, ring tones, themes, wallpapers, games and all
kinds of tools available for any type of mobile equipment.
In this market, there are four large firms, who dominate almost 90% of legal sales
of mobile applications.
These are:
- APP STORE, apple:
Apple Store has the most experience and recognition in the market, being the
world leader in multimedia application downloads for the full range of products
offered. But for this very reason is limited to only one market segment, and
disclaims any team other than your company.
- Android Market, Google and Android:
Android is a relatively new company but with great force entered the market with
its main sponsor is Google, Apple still does not overcome because the Android
operating system is not implemented by highly acclaimed in the market due to
their compatibility and functionality.
- Ovi Store, nokia:
The advantage that this company owns is that they provides a functionally platform
that give all the users access to a lot of exclusive services.
- BlackBerry App World, Rim:
This firm is being grown because of the popularity of their products, but as all the
other companies just focus on their own products.
App Store
10
BlackBerry App 0 Android
Ovi Suit
Potential New
Entrants
The economic power of new entrants is key.
Bargaining Power of Suppliers Bargaining Power of Buyers

Intraindustry Rivalry The exaggerated
Form alliances with The rapid growth of range of multimedia
this market is the factor
large firms provide to be considered
products at very low
distinctive brand. cost is the crucial
factor.
Substitute Products or Services

Being able to offer
lower cost products
to weaken the
inclination of other
products.
1) Describe the Porter’s competitive forces model (Porter, 1985) for the
company you are representing:
1. The threat of entry of new competitors:
The biggest threat presented by new entrants is presented without any

doubt in terms of costs, because there are competitors that may enter the
capital market more than ours, so they can also create a high differentiation
as concerning the presentation of the website. Additionally, there may be
competitors have greater coverage for mobile equipment references.
We consider also the fact that new competitors can enter the market with
sponsorships or partnerships that enable you to start with greater
competitive strength than us.
2. The bargaining power of suppliers:
Starting in the market, we must hang on to a limited number of suppliers

and we also have to negotiate with companies that trade directly with their
products, so we will find products at a price high enough, but once late in
the process, but the Half of our products will be made directly by our
customers, thereby diminish the power that can exert direct manufacturers
from us.
3. The bargaining power of customers (buyers):
When we refer to the power exercised by customers, we can certainly highlight

the need for them to find lower prices for higher quality applications.
Additionally we must consider that the volume of demand for mobile
applications per user is as high as the various web pages that offer them;
therefore you must create a sense of loyalty to each client in order to build
loyalty to each and some a removal from the market.
4. The threat of substitute products or services:
The alternative product that may more directly affect our company is the
music, because instead of downloading a ring tone can simply download a
complete song or otherwise transferring it from a computer or other
equipment.
Besides this, indirectly you can find a threat when using premium minutes
for calls using the same balance for multimedia applications.
5. The rivalry among existing firms in the industry:
In this regard, one of the greatest threats we can highlight is the

accelerated growth of this type of product market, which obliges us to
undertake a continuous update of both our products and the presentation of
our website.
Besides this, the growing range of mobile devices get better and new, it
allows our consumers to spend much time with a specific type of product
and thus applications.
2) Information technology contributes to strategic management in many ways
(see Kemerer, 1997, and Callon, 1996). Describe the following eight based
on your product or company:
1. Innovative applications.
Definitely the greatest innovation that can offer the company, he settled in terms of
coverage, because our essence is able to offer to any mobile equipment (whether
of the manufacturer or references, or is new or old), software and applications
enabling them to have their equipment updated and customized mobile depending
on your preference.
2. Competitive Weapons.
Our weapon or in competitive strength lies mainly in the customer-company

relationship, and that the future success of our business is based on the same
customers become suppliers.
Another of the weapons we have is certainly the low price of our products,
combined with the high quality of the data will allow us to become market leaders.
3. Changes in processes.
The main change in this business is displayed in the relationship which aims to
build with our clients.
4. Links with business partners.
In our business, we intend to partner with larger firms mobile equipment

manufacturers, in order to gain ground in terms of exclusivity and enforceability of
our products.
5. Cost Reductions.
No doubt the fact that all direct online business allows us to reduce a large amount
of infrastructure costs. Besides this the customers make in our future suppliers
dropping down to us a certain independence from the suppliers in the market.
6. Relationships with suppliers and customers.
As stressed before, creating an intimate relationship with our customers, to the

point of becoming our suppliers is one of the biggest advantages we have.
But if we refer to this business, we have to do without a doubt, a reference to

preferential treatment that we have with our clients more frequently and likewise to
the loyalty we owe to our suppliers of large firms.
7. New products.
In this step you have to make a clarification in the first place if it is considered as a
new product to each new application or game that we publish, we can say that the
key to business success is this same creation of new and better applications.
But if the reference of new products is directed toward the creation of new
software or utility rates, one must admit that in the current draft of the company are
not those processes.
3) Porter (1985) proposed cost leadership, differentiation, and niche

strategies. Additional strategies have been proposed by other strategic-
management authors (e.g., Neumann, 1994; Wiseman, 1988; Frenzel,
1996). Describe the 12 strategies for competitive advantage within the
company you are representing.
1. Cost leadership strategy
In this strategy, we can say we enjoy an advantage due to low production cost in
the application, and because of this we can provide our customers with a very low
price shocks.
2. Differentiation strategy
The great differentiation that can be seen in our business, as we have

emphasized, is the great teams that provide coverage.
3. Niche strategy
Our niche market focuses on anyone who has a cell phone and want to improve or
customize it according to your preference. In this way we provide a large number
of applications at the lowest price and best quality to anyone who has any type of
mobile equipment.
4. Growth strategy
Our growth strategy is based on offering our customers more and more products,
more new and excellent quality.
5. Alliance strategy
At first the idea is to establish partnerships with major mobile equipment

manufacturing companies, but the idea of creating partnerships, extends to the
future, where we will create a close relationship with our consumers.
6. Operational Effectiveness strategy

The best we can implement operational process is the way to access the store
virtual, and the shape and volume to supply the products.
7. Customer-orientation strategy
The easy access and use of our platform, and offering a large number of high
quality products at low prices is the best way to provide convenience and
efficiency to our customers.
8. Time strategy
Weather plays an important role when the output is related to new equipment and
therefore the need for innovation in the applications offered. To address this we
have a large group of observers that are constantly updated as new releases of
hardware and software.
9. Lock in customers or suppliers strategy
The main idea is to provide our customers a service that leaves so satisfied (in
terms of software and application availability, price, quality and use) that they
become loyal customers and committed to our business.
10. Increases Costs switching strategy
Products at low price (in the future, some free), and high quality and availability is
the main venue for this preference of our customers.

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My Name:Jesus Hernando Ospina Pava.

- This business is based on sales through Internet multimedia applications

BlackBerry App 0 Android

Bargaining Power of Suppliers Bargaining Power of Buyers

Substitute Products or Services

1. The threat of entry of new competitors:

The biggest threat presented by new entrants is presented without any

Starting in the market, we must hang on to a limited number of suppliers

When we refer to the power exercised by customers, we can certainly highlight

4. The threat of substitute products or services:

5. The rivalry among existing firms in the industry:

In this regard, one of the greatest threats we can highlight is the

Our weapon or in competitive strength lies mainly in the customer-company

4. Links with business partners.

In our business, we intend to partner with larger firms mobile equipment

6. Relationships with suppliers and customers.

As stressed before, creating an intimate relationship with our customers, to the

But if we refer to this business, we have to do without a doubt, a reference to

3) Porter (1985) proposed cost leadership, differentiation, and niche

1. Cost leadership strategy

The great differentiation that can be seen in our business, as we have

At first the idea is to establish partnerships with major mobile equipment

6. Operational Effectiveness strategy

9. Lock in customers or suppliers strategy

10. Increases Costs switching strategy

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