Management Information System

Five Forces Analysis 

Assumes that there are five important forces that determine competitive power in a business situation. 

These are:

1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.
2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.
3. Competitive Rivalry: What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.
4. Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Porter's Generic Strategies

The Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage – in other words, developing the "edge" that gets you the sale and takes it away from your competitors. There are two main ways of achieving this within a Cost Leadership strategy:

• Increasing profits by reducing costs, while charging industry-average prices.
• Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs.

The Differentiation Strategy

Differentiation involves making your products or services different from and more attractive than those of your competitors. How you do this depends on the exact nature of your industry and of the products and services themselves, but will typically involve features, functionality, durability, support, and also brand image that your customers value.

To make a success of a Differentiation strategy, organizations need:

• Good research, development and innovation.
• The ability to deliver high-quality products or services.
• Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

Large organizations pursuing a differentiation strategy need to stay agile with their new product development processes. Otherwise, they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments.


The Focus Strategy 

Companies that use Focus strategies concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market. Because they serve customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. This makes their particular market segment less attractive to competitors.

As with broad market strategies, it is still essential to decide whether you will pursue Cost Leadership or Differentiation once you have selected a Focus strategy as your main approach: Focus is not normally enough on its own.

But whether you use Cost Focus or Differentiation Focus, the key to making a success of a generic Focus strategy is to ensure that you are adding something extra as a result of serving only that market niche. It's simply not enough to focus on only one market segment because your organization is too s

mall to serve a broader market (if you do, you risk competing against better-resourced broad market companies' offerings).

The "something extra" that you add can contribute to reducing costs (perhaps through your knowledge of specialist suppliers) or to increasing differentiation (though your deep understanding of customers' needs).

Definition of Value Chain

A value chain is the whole series of activities that create and build value at every step

Definition: A value chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the company. Michael Porter developed this concept in his 1980 book 'Competitive Advantage'.

Description: The significance of the value chain: The value chain concept separates useful activities (which allow the company as a whole to gain competitive advantage) from the wasteful activities (which hinder the company from getting a lead in the market). Focusing on the value-creating activities could give the company many advantages. For example, the ability to charge higher prices; lower cost of manufacture; better brand image, faster response to threats or opportunities.

Case

Vision : our vision is to build a modern and unique sushi restaurant with an authentic                         Japanese taste that will give an unforgettable and full of pleasure experience.

Mission : Combining the feeding process with sophisticated technology  to build a system          for booking and payment transactions selection of raw materials to be sent                  directly from japan

1. The threat of new entrants:

The threat of new entrants in this culinary industry is nothing to worry about since for  the newcomers to enter this culinary industry is not easy, because it required quite a large capital. Such as the introduction of a system at the booking and payment transactions for a fast and modern system, and also original raw materials from Japan with good quality so that the authenticity of the flavor can be maintained. Then in collaboration with a Japanese chef who will always keep the distinctive taste of Japan. Plus, at this restaurant we also apply e-commerce. And this one is an application that needs to be pursued by the new entrants (low)

Things that will be done to deal with the competitors :

- Maintain a good relationship with the supplier by being a major client, and always loyal to the supplier

- Maintain and control the quality of raw materials and to provide consistency in taste

- Maintaining the applied system  to be always evaluated

- Creating a new innovation for the food or for the service

2. The threat of substitute products or goods

The threat of substitute products is quite big because there are a lot of sushi restaurants located in the area of Jakarta. However, in anticipation of their food products to replace us. Our restaurant will provide good service and atmosphere that  much like being in the original Japanese restaurant, authentic taste, as well as an unforgettable dining experience when the food is mixed with the technological sophistication that is given, and also an affordable price. It will take the hearts of customers, and the customers will be reluctant to switch to another Japanese restaurant although the type of food on offer is similar. (medium)

3. The power of bargain shoppers

Restaurants kitadori face the challenges of bargain shoppers by giving a friendly service, nice, and give some bonuses if customer join as a member. So that the customer will always be loyal.

4. The power of bargaining supplier

high quality goods is certainly easier for companies to provide products and service with good quality as well. Kitadori is depend on several suppliers that already selected and  trusted. which is suppliers that derived from Japan who responsible for the availability of raw materials such as food suppliers who produce japanese rice, suppliers who focus on the production of spices typical of Japan, and for the fish we have two suppliers that come from Japan and from Indonesia. Because we always want to produce the food quality and taste is always maintained. that's why we always try to maintain a good relationship with our suppliers. for example we made a commitment for payment and delivery of goods to be punctual, and maintain good communication in. Because we can't establish a good relationship, the supplier will stop the distribution of raw materials to the kitadori restaurant . So it will have an impact to difficulties of food production, the price will increase, and it will likely to happen for bankruptcy. (Low)

5. Competition from Competitors In The Same Industry

This time although the taverns and sushi restaurants already fulfill the area of jakarta .however, kitadori restaurant is different from other sushi restaurant in jakarta, because there's no other sushi restaurant who can implements a unique system in the process of booking and payment, with affordable price, atmosphere and taste similar as is in the original Japanese restaurant. (Low)

Strategies Focus

Kitadori restaurant is focusing to be a restaurant in Jakarta with the development of e-menu system (electronic menu) with an iPad device to replace the function of a waiter. At each table there is one unit of iPad, which lists the full menu and the price as well. customers only need to simply press the buttons instructions that come with the iPad app to order dishes. A few minutes later the dish will be delivered to our table. The food is delivered to each table through a container that is designed like a Japanese fast trains (shinkansen), through the wooden rails that were on the walls of each table. Each table has a number, which must have been combined with the existing iPad devices. So each train introductory course, will stop right at the table who ordered it. When the dish arrived at the table, cutomer should immediately pick it up, then press a red button on the wall table. The key function is to order food delivery wagon back into place (kitchen) .And when the customer payment transactions just select the button on ipad to total the purchases which later the system will calculate the price that must be paid. But not only focus with the e-menu, but kitadori restaurant also focus on the sushi flavor and the atmosphere will be the same as you eat in Japan directly.

Application of Value Chain in our restaurant

1. Primary Activities

a) Logistics Sign (Inbound Logistics)

In determining the supplier, Kitadori involves various aspects such as quality and customer. that makes supplied products of kitadori restaurant is high in quality. for example is the use of fresh fish to be the main ingredient of the sushi

kitadori using the concept of decentralization that is not focused only on one vendor.

b) Operations (Operations)

 Maintenance of the system on the reservation and payment routine

training for waiters so that the service can be given more improved

Improved infrastructure

c) Logistics Exit (Outbound Logistics)

Establish partnerships so that many transactional processes in procurement can be reduced and the company can focus on its primary purpose

for example: kitadori has built patnership with foodpanda .one the companies who served delivery order for customers

d) Marketing and sales (Marketing and Sales)

Provide a variety of promotions via digital or social media in order to boost sales and increase its popularity in society

e) Services (Service)

Services became the main focus on kitadori for customer satisfaction

Always be friendly to all customers

2. Activities supporters

a) Procurement

In the selection of vendors, we pay more attention to the quality of the raw materials

b) Technology Development

 The implementation of e-menu system is technology that enables a customer to order from the menu directly on the Touch Screen in the customer table, so there's no need to call the waitress to take down the menu

c) Human Resource Management

Training for employees in order to improve service

d) Firm Infrastructure

The new management kitadori transform the company's overall business with the aim of improving the efficiency of operational activities

Sumber :

https://www.mindtools.com/pages/article/newTMC_08.htm ( Five porters strategy )

https://www.mindtools.com/pages/article/newSTR_82.htm ( Generic trategies )

http://economictimes.indiatimes.com/definition/value-chain ( Value chain )