Day 02 – IT and Competitive Strategy (I)
Day 2 Otis case brief grading completed
Day 02 – online discussion questions
Let’s keep the discussion on-going!
- What are the examples of “switching costs” that reduce the bargaining power of buyers?
- In the presence of fierce rivalry among competitors, what should you do in order to better compete with them and achieve high profitability?
- Why is an elevator service business more profitable than a manufacturing, based on the five forces?
- Why do companies sell bundle?
- The case states on Page 8 that “The next step in our evolution will be the management of information flows between all the participants.” What does it mean by information management? Why is it important?
- The case states on Page 8 that “To achieve continuous transformation, the e*Logistics program makes sure the business process change sticks. … With the e*Logistics program, best practices from SIP are baked into the organization and institutionalized to achieve that continuous transformation.” What does it mean by “stick” and “baked”?
- Would the change from manufacturing to a service company at Otis be easy? Who would be unhappy with this change?
Day 02 – IT and Competitive Strategy (I) – class slides
Day 02 – Sign up for presentation
For next week’s class, we need two volunteers to present the following articles (5 minutes each). Please leave a comment below to sign up.
- HBS Case – “Otis Elevator: Accelerating Business Transformation with IT”
- Harvard Business Review – “The Five Forces That Shape Strategy” by M.E. Porter
Presenters will be given both participation points and a waiver for one reading brief. Please leave a reply below. I’ll let you know how to download the 2nd one.
Day 02 – In-class Discussion Questions
For those who are eager to participate but not comfortable with speaking up in a crowd, I’m sharing some of the questions that we’ll be discussing next Monday. Like I said, preparation can be a pill to your shyness.
- In Porter’s Five Forces model, when do buyers have a strong bargaining powers?
- Why is elevator service business more profitable than elevator manufacturing?
- The case says “The service market attracted many participants because of its steady demand, low barriers of entry, and high profitability.” (p. 3) Doesn’t it mean that the service market is not profitable for Otis?
- Can you think of an example of bundle around us?
- For Otis to successfully transform itself to a service provider as it wants, what kind of actions or changes are imperative?
- How were things going before and after OtisLine?
Be advised that these questions are not for online discussions.
Day 02 – Reading Brief (Otis Elevator) Guidelines
Read the Otis Elevator case from the Harvard Business coursepack and explain the following three points in your brief.
- What’s the direction of Otis’s strategic move?
- Why is Otis trying to shift its strategic focus?
- How do Otis’s IT projects (OtisLine, e*Lostistics) support such a move?
Instructions
- Up to 200 words.
- Due by 5:30pm on Sep 8. A late submission will not be graded.
- For your brief to be considered for a best brief with extra credits, you need to submit by noon on Sep 8.
- DO NOT COPY AND PASTE from the case. Use your own words. Plagiarized work will be graded at 0.