BIS Group Value Chain Analysis

For a company to fully enjoy the fruits of diversification it must create a sense of uniqueness in its operations which the BIS group failed at. The company’s value chain analysis clearly show’s an organization which doesn’t fully utilized its resources to add value to its final product or service. During the research period, a number of challenges facing the organization’s value chain emerged.

• The organizational structure was lacking, breakdown of roles and positions was done yet the job descriptions were never laid out clearly.

• There were too many employees who did almost the same tasks, which led to work overlap and other interns having no tasks at all to do.

• There was no autonomy in each of the BIS group units, in terms of management

By this the author means, how well will the company cope with the threat of competition in the target markets. Whether starting a new business or looking into more insight of current company’s prospect the biggest question always lingers around the competition.

One of the way a business in the same situation as The BIS group can understand its competition and its competitive advantage is through Michael Porter’s five competitive forces that shape strategy. It’s important for a business to use this five forces tool in order to understand where the power lies in a business situation, this understanding ena-bles a company to identify its current competitive position as well as the strength of a position it is considering moving into. With all this clear understanding the company can take fair advantage of strength, improve a situation of weakness and avoiding venturing into wrong

Understanding Porter’s five forces tool

Competitive rivalry

This force examines the intensity of current competition in the target marketplace, the most important issue her is the number and capability of the company’s competitors. If the firm faces many competitors who equally offer attractive products or services, then the firm will most likely have little power within the marketplace as suppliers and buyers will go elsewhere if they don’t get a better deal. When rivalry competition this can result to hurting the company’s bottom line through high advertising and prices.

Threat of new entrants

This force gives an insight on the ease or difficulty of the firm’s competitors to join the marketplace, where the costs of time or money to enter the marketplace are low, if there are few economies of scale in place, or if the firm has little protection for its key tech-nologies, then the firm’s position in the market place can be quickly weakened by new entrants.

Threat of