Essay Example | Topics and Well Written Essays - 4500 words

Essay Example Further, turnaround firms, in order to achieve their objectives do not entirely rely on uninterrupted, fast response time, information technology in order to achieve their objectives. Rather, their future applications play a great role in ensuring that they achieve their strategic objectives. On the other hand, factory firms heavily depend on reliable, -efficient, information technology support. It is only through highly reliable system that such firms can survive the danger of failing. However, although development applications in a factory are important in their own right, they are not entirely responsible for the success and profitability of the organization. Support firms however, do not associate performance with information technology; it has low strategic impact in their operations. Such firms rely on support systems in order to support their operations. Although they could survive for a long time without these applications, they require them to leverage their productivity. Organizations currently operate under high competitive environments. Porter argued that for an organization to survive high levels of competition, it must strategically place itself within these competitive factors (Karagiannopoulos, et al., 2005). In porter’s competitive model, he proposed five factors that would give a firm competitive advantage over other firms operating in the same industry. As porter argued, the five forces bring about industry rivalry of the existing firms. Threat of new entrants according to porter determines the ease with which customers can switch to products offered by competitors (p. 129). All industries have numerous substitute products available, and as such, factors such as price and quality contributes significantly to customers switching their products to their competitors. The ease of customers in finding a product offered by one company at a cheaper price, or higher quality goods increases the threat of