Efficiency and Competitiveness by Information System of Marston Tools Assignment

Efficiency and Competitiveness by Information System of Marston Tools - Assignment Example The industry faces a high level of competitive rivalry. The threat of new entrants is high given the increased competition from manufacturers overseas. There is also competition from lower cost substitute products. Changes in the manufacturing technology have been copied by manufacturers in countries where the same manufacturers have the added benefits of lower materials and labour costs. As a result the industry has been flooded with lower cost substitute products. Because of the availability of these substitute products, the customers have more bargaining power. This means that Marston Tools must be able to maintain a high level of manufacturing quality in order to remain competitive. By integrating information systems strategy with business strategy, the company will be able to achieve this objective. When it comes to acquiring and developing the right business information systems, Porter’s five forces should be assessed in terms of how they impact upon the company’s profitability. As the previous analysis indicates, the industry is characterized by changes in the products and manufacturing technology. This increases the competition. ... The company’s information strategy should be formulated accordingly. As mentioned before, the industry experiences changes in the products and manufacturing technology. Porter’s five forces analysis reveals that these changes can easily be copied by manufacturers overseas who also have the added benefits of lower materials and labour costs. Therefore Marston should not define operational effectiveness in terms of continuously improving the manufacturing technology leading to proprietary content or distinctive processes (Kotler and Armstrong, 2005). Rather it should be defined in terms of delivering unique value to the customers in the form of higher quality. Therefore when it comes to the design and acquisition of information systems, the management should focus upon creating a system that is aligned to the strategic objective of delivering high quality to the customers. In this manner the company raises switching costs thus lowering the bargaining power of buyers. The company operates in an industry which has a high threat of new entrants, a high threat of substitute products and high bargaining power from the buyers. Value chain Currently the company is operating a computer-based system of production scheduling and control. This enables the company to facilitate coordination of different departments by creating a production schedule based upon orders received and sales forecasted. However the company is still facing problems in guaranteeing customer delivery dates and this is affecting sales. Therefore the new business information system should address this problem. However the implementation of the information system will affect both primary