Type of paper: Essay

Topic: Information, Company, Business, System, Database, Data Analysis, Competition, Market

Pages: 8

Words: 2200

Published: 2021/02/23

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IT Case

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This report has been created to study the competition faced by the three companies of Baker, Barker and Bickel in the market and what alternative they can use to save their business from the increasing competition in the market. Here in this report the five force analysis has been made for all three companies to understand the actual situation the companies are facing at this particular point of the time. All the three firms face a huge competition in the market and therefore they want to merge their property and client database to get a competitive advantage over its competitors. But the owners don’t want to share their customers’ database, in place of it they agreed to share their product and services database to solidify their services and product database by developing their business strategy to share information among each other (Burgess, 2002). Before developing and suggesting a proper plan to them, it is important to analyze the competition the companies faces in the market to implement a better plan for managing their information system.

Five force analysis

Five force analyses have been suggested by porter to understand the pressure of competition the companies faces in the market. Here in this report the five force analysis has been done to study and understand the competitions faced by the three companies in the market when each company works independently without merging their information system, they face the following threats and problems during their course of activities.
Threat of new entrants: The existences of all the three companies are threatened by the entrance of new competitors. As the market is an open market and has a good prospect of growth, it is vulnerable to entrance of new competitors that acts as a threat to all the three companies of Baker, Barker and Bickel.
Threats of substitute services and products: The threats of substitute services and products are faced by all the three companies. As they deal with the tourism industry, which has a high potential of growth, there exist high competition in the market. Therefore they need a merger of the information system to develop their products and services strategy and gain a competitive advantage in the market.
Customers bargaining power: Customers bargaining power depends on the price charged for delivering their services and products by the company. If all the three companies merge together and use a common database of products and services by developing a common pricing strategy for all their products and services, the problem faced by the bargaining power of the customers eliminates or can be reduced. This helps the companies to create a monopoly in the market and avails them to decide a common price for all the services and products delivered by them.
Suppliers bargaining power: With merging of information and unity all the three companies, they gain a power of reducing the bargaining power of the suppliers that helps them to avail the services of the suppliers at a common price rate.
Competitive rivalry: As all the three companies operate in an open market that has a number of other rival companies, they face a huge competition in the market. To expand their business they need to merge the information system of their company to have a competitive advantage over their rivals. As it can be said that “United we stand, divided we fall”. By uniting with each other they develop a better strategy to fight the completion.

Alternative plans

Plan A (Using Email for sharing database):
The email technique for sharing the database along with the other firms that helps in using the property database for references. In the beginning of the process we must create the information technology setup that is the most important part for technological setup that is the basic hardware requirement for the entire process that enables us to use the email features for sharing the databases among the firms. Then we drop down to the software section, where the databases are created with the help of spreadsheets to make sure it is authentic and there is no loss of data. Then we move over to transfer the spreadsheet database to the software that is termed as Microsoft Access for maintain the huge database (Halale, 2010). In the data section we need to send the created database to the other firms that are involved in the collaboration with the help of email. Then finally we drop down to the process and people components, Firstly we need to access the email and the database of the property information that are sent by the other firms which are in collaboration i.e. Baker, Barker And Bickel. After receiving all the personal information from the above stated individuals we need to merge the database of the other individuals with its own database. After completing all the steps that are mentioned above we need to apply all the actions and concepts that are used in the database effectively for further use. The database of the three individuals is further merged effectively and is ready to be accessed by all the three individuals that are stated above. Hence we can finally state the above alternative planning process with the use of email for database sharing is quite effective for all the individuals as they can share their property information with one another and gain advantage in the competitive market.
Figure 1: Process diagram for alternative A

Plan B (Using Website for sharing database):

The first thing that comes in mind when thinking of Information Technology setup is setting up a VPN installation setup, then we must segregate the operating systems on which the services will be based on, and then opt out the unsupported operating systems that will not work with the installed system. Accessing the database through a trusted website will be a secure remedy for the companies, and that would be helpful for them to maintain their standard procedures through a well maintained and secure line of processes (Gottschalk, 2007). The website should be engraved with all the external and internal affairs of the company so that the company could make use of it to maintain the infrastructure through a general way of processes. Designing improved ERP software and maintaining the CRM processes through it, should be another tool of improved management process, the ERP software maintains all the affairs regarding Product Planning, managing the Inventory issues, scoop out the Shipment patterns required to disembark the product. Analyzing the implemented procedure and also the attributes of the website becomes the fact of concern when we try to hook into the website, so analyzing should be done in a stepwise manner, it should be started by scanning the improved ERP system installed onto the system, and then how effectively it is maintaining the CRM process. Then maintenance of the external and internal affairs plugged into the system, which ensure proper running of the system, all the internal and external should be thoroughly checked, so that no glitch appears in the running system and cease its proper working. Assigning the login ID’s to the firms, ends the procedure of setup, and then you have a working website through which the firms can directly access the database, and maintain their line of work.
Figure 2: Process Diagram for alternative B

Need for merger of information

It is quite important to merge the information of all the three individuals as it would helps all of them to view the database of the other officials quite effectively so that they can use them in their requirement. The entire report states the collaboration of the three individuals that are involved in merging their property information that helps them to gather more clients with the help of the information provided by others (David, 2005). This concept is quite important as it enables the other use all the required information that is quite important for gathering new clients and working in the market effectively. Hence we can easily figure out that there is a huge need to merge the information to fetch better results.

Implication of sharing data

Data sharing is one of the major needs of any company to solidify it information system. Here in this study we can see that Baker, Barker and Bickel agree to share their database of suppliers and properties they usually rent. This helps them to create an enhance database for their products and services that helps to gain a competitive advantage in the globalized and growing market of tourism. They agree data through a common information system that helps to create an enhance database for them. They planned to use to alternative procedure of managing information system. First alternative uses an email system that is more complicated to share data and the second system is using a website that is easier to use and more appropriate for all three companies but it is too costly and has vulnerability of loss of data of the company. Both the alternative is good at its place as well as has some negative prospects for the companies. As the companies share their data with each other, they enhances their database, but along with it they losses their own advantages of having a separate database. But the positive aspects over rules the negative one and helps the companies gain competitive advantages over its competitors in the market in which they operate.

Benefits of the new system

The new system is quite beneficial as it allows the other individuals and the entire system to access the data with the help of Email and Websites. The new system is quite effective in numerous sections as it allows the users to create its own database with the help of Ms – Excel and then on to the Ms-Access Software then after we accumulate all the details with the help of email and other factors that are quite important for the entire process (Kroenke, 2007). The other system that is designed above states the new transformed process of the internal and the external system that allows the individuals to make sure that all the details are accessed by all the individuals for better functioning. Hence we can easily state that above system to be quite effective as it provides us with all the added features and functionalities that are required for sharing of data and other features with the help of enhanced internal and external sub system that comprises of the CRM, ERP and other social media sites. Moreover the new system enables the user to gather more secured information that was not possible in the earlier systems.

Cost and feasibility analysis

Cost and feasibility is one of the most important factors that needed to be considered before developing a merged information system. All three companies need to develop their IT system to share data and therefore they need to invest for computer hardware and software for developing their IT system (Strong, n.d.). They need to employ IT experts who are able to deal with the new information system and work for the company for expansion of the business. They need internet connection and if they use the second alternative of website system, they need to develop a common portal for all three companies from where each company is able to excess the data of the other companies. Hence the costs needed to implement the new information system are as follows:

Cost for installing hardware and software

Cost for installation of internet service and recurring expenditure of the service.
Cost for employing IT experts
Cost for developing a common portal
Cost for managing the portal.
Hence, it can be seen that the second alternative is more costly than the first alternative because in the first alternative there is no need to develop a website and they uses email by only paying for the internet and installing hardware and software for the needed task. The salary paid to the employees in first case is also less than that needed to be paid in the second case. Though the second alternative is easier and more appropriate for use of all the three companies, but it requires more investment as compared to the first alternative. Therefore the decision of choosing the alternative plans depends on the owners mentally to invest in the business and availability of skilled employees for completing the task and managing the system.


Burgess, S. (2002). Managing information technology in small business. Hershey, PA: Idea Group Pub.
David, F. (2005). Strategic management. Upper Saddle River, N.J.: Pearson Prentice Hall.
Gottschalk, P. (2007). Business dynamics in information technology. Hershey: Idea Group Pub.
Halale, M. (2010). Management information system. Mumbai: Himalaya Pub. House.
Kroenke, D. (2007). Using MIS. Upper Saddle River, N.J.: Pearson Prentice Hall.
Strong, H. Marketing and management models.

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