Porter's Five Forces Model Of IRMA

Fundamentals of Information Systems Exam Assignment

Table of Contents
Statement 3
Introduction 3
Case Presentation 4
Theoretical Framework 4
Porter 's Five Competitive Forces Model
1. Degree of Competition

2. Threats of New Entrants

3. Threats of Substitute Products

4. The Bargaining Power of Customers

5. The Bargaining Power of Suppliers
5

6

7
Discussion
Conclusion
Bibliography

Statement:
How does the online grocery shopping technology impact IRMA’s competitiveness according to Porter’s 5 forces model?

Introduction:
Supermarket has always been an indispensable service in our life. Being the second oldest supermarket chain in the world, IRMA has well established its brand image and reputation both

The relatively early introduction of this modern service helped IRMA to become one of the only two main online grocery-shopping services. IRMA’s online grocery-shopping service broke the traditional grocery shopping chain, which we see a potential future progress that IRMA further expand its business via the utilization of Internet.
Theoretical Framework:
In this assignment we will utilize Michael Porter’s Five Competitive Forces model. The model enables us to have a deeper understanding of IRMA’s competitiveness within the supermarket industry in Denmark and by adding the impact of information system to each forces, we thus have a brand new understanding of the current and potential future impacts of the newly introduced online grocery-shopping service on IRMA. By applying the Five Competitive Force model on IRMA, we are able to compare and identify the advantages and disadvantages of IRMA with the industry and the potential threats of the new

Customers such as students or lower-class people will have a higher bargaining power since there is multiple back up choices of cheaper supermarkets such as Netto where they can shop. Therefore, before the launch of the online supermarket service, Irma’s customers’ bargaining power is high for low class people, students and people who don’t care as much as the high-quality or organic products; however as mentioned above, people who are wealthier and care more about the quality of the products will have low bargaining power due to the centralized product distribution control by