Assignment 2: IT Doesn't Matter

Time to critique! 

Mr. Carr mentions that in order to gain a competitive advantage, you need to be able to perform something that competitors are unable to perform. Thus, he concludes that because IT is widely available and is used by rivals, its strategic value does not increase. However, I disagree with his belief because even though information affordable and accessible, their reward is only measured by the constant advancement in it's manipulation to gain information in a variety of new and better ways than the competitors. The human aspect of IT plays a vital role in constantly upgrading the hardware and software aspect of IT that can make companies competitive. 

Mr. Carr writes "The trap that executives often fall into, however, is assuming that opportunities for advantage will be available indefinitely. In actuality, the window for gaining advantage from an infrastructural technology is open only briefly." I completely disagree with his statement. For example, many companies utilizes IT in order to provide their consumers with an online shopping experience. The advantage of online shopping has never disappeared, even after thousands of stores pop up on the internet. For companies, the more advanced their IT technology, the better they are able to provide their consumers with better shopping experiences. 

Finally, I disagree with Mr. Carr's  discouragement for companies to invest in IT "At a high level, stronger cost management requires more rigor in evaluating expected returns from systems investments, more creativity in exploring simpler and cheaper alternatives, and a greater openness to outsourcing and other partnerships." While not investing in IT can save a company a sum of money, but it can also greatly hurt it if company's employees are not using the latest technology in order to better perform their job efficiently and effectively. This is similar to a company that refused to upgrade a typewriter to a computer because the company felt that the employee will not be using anything else but word document (thus, they can simply use the type writer instead to save cost).

Assignment 2: Tesla Motors

American Company

Designs, manufactures and sells electric cars

How attractive is the electric car industry?
Very attractive. Tesla has influenced companies such as Honda (ex: Honda Accord) and Toyota (ex: Toyota Prius) to design, manufacture and sell their own version of electric cars. Buyers are interested in electric cars; thus, companies start to compete against one another in order to win buyers. This leads to prices decreasing. For example, Tesla originally manufactured luxury cars that started selling at $60,000. Now, they're planning on introducing an economy electric car that will start at $28,000. This makes it affordable to larger number of consumers who are interested in electric cars. As a result, Tesla is able to compete with Toyota and Honda, but had to drive their profit down as a result of buyers bargaining power. 

Is there a threat to electric cars?
Yes. Most consumers prefer owning an electric car because it saves gas money. Hint, if prices of oil go down, the benefit of owning an electric car (from an economical perspective) will not be strong enough. One can only wonder why Tesla's stock prices have been going down over the past few weeks....

 Bargaining power of suppliers?

Well... Tesla relies on Panasonic to manufacture the car's battery, a critical component of the electric car. Panasonic can easily drive Tesla's profits down if they raise the price of manufacturing Tesla's car battery. 

Threat of new entrants?

Hardly, unless you're a multi-million business with spare cash on hand.

Rivalry? 
Tesla was on a role before companies such as Toyota and Honda entered the electric vehicle market. Unfortunately, Tesla will have to somehow decrease their prices in the near future in order to stay competitive...or provide a better quality electric vehicles that outperform others in the market




Cost Leadership?
Can you afford to pay $62,255 for a car? Tesla doesn't compete on cost. 

Differentiation? 
They make the best electric cars in the world. Their Model D is the believed to be the fastest car worldwide, and it has autopilot! Their technology is always cutting edge in the electric car industry.   

Tesla follows a differentiation focus, by providing the best quality of electric cars that meets the needs of a specific target market within the car industry.



Value chain?

Inbound logistics: All the car designs is performed internally, in the United States, by Tesla's engineers

Process or Manufacturing: Tesla's parts are outsourced (ex: Panasonic manufactures the batteries). However, Tesla puts together the car inside their owned factories 


Watch "How the Tesla Model S is Made"

Sales and Marketing: All done by the one and only Tesla! 



 beautiful...

Their store in Santana Row, San Jose. They sell directly to consumers in order to have more control over their prices and have direct relationship with their consumers. 








Now it's time to discuss how information technology helps make Tesla a competitive company. 
Information technology a system that is made up of people and computers that work together to process and interpret information. It captures data, then transmits it in order to store it; then it retrieves the data with the request of people, manipulates it and displays it in a way that is understandable. Tesla uses information technology to support their operation internally and externally, with their suppliers and customers. 

Assignment 1: Collaborative System

Google docs is a free application, open to all users, that can be used to create word documents, presentations or spread sheet that is stored online. Multiple users can edit the document simultaneity. However, google documents does not provide a strong security for the documents, after all it is free... However, Google docs does target business, but business must be aware that by uploading their documents on to google docs, they are risking having them stolen if the information uploaded is valuable. Personally, google docs is my number one option to do group projects. It keeps track of history edits (so you know who didn't do their portion of work :/)   and I can work on the document with my team members simultaneity. 

Catalyst is used by the De Anza community college online community. I am currently using it by taking two online classes at De Anza college. It has email and chat system, an option to provide quizzes and tests that are timed, a thread for discussions and space to upload videos and large files. However, the outline of catalyst is very old system, meaning that it is not user friendly. It takes time to get around the website and understand it. I currently have a group project that I am working on for my e-commerce online class, I use catalyst to communicate with my group and work on the project. 

Facebook is well too known to explain, even my grandparents...all the way in Egypt are active users of the website. Facebook facilitates the sharing of information between friends and the public (if you have your share settings on "public"). People use it for many different ways, other than stocking one another. It has messaging system, an option to share photos and videos, as well as create statuses and events. It also provides a way for people to share their location (because who wouldn't want to know you're currently out eating burgers). Some of its disadvantages include the ownership of Facebook on personal information that gets uploaded by the user. In addition, Facebook facilitates an easy way for users to save information provided by one user, even if that user later on deletes it (that embarrassing photo?). However, Facebook can still be used as a way to communicate with others in order to perform positive tasks: such as creating an event that gathers people who have a common interest.

WhatsApp is an application used to communicate with other people around the world by relying on the internet connection. It is free and accessible almost to everyone who has an android or iPhone. It is very popular in countries such as India. Users can send/receive texts, videos, audio, or pictures. They can also store their chats and send it to their emails. users can also see "last seen at" status (So you'd know if someone had ignored your texts) However, after one year of using the application, users will need to pay $1/year moving forward. I use WhatsApp to talk with my family back in Egypt.

And last but not least, Instagram. A photo and video sharing application popular among teens and young adults. It is accessible to anyone with an iPhone or android. Users can share their photos and videos, while their friends can comment or "like" them. However, Instagram have ownership over the content posted on their application and doesn't provide strong privacy either. Thus, users should be aware not to post anything that they might later regret. I use Instagram to learn about the lives of my friends and communicate with them by leaving a comment or "liking" their video/image.