STUDENT NAME:
STUDENT ID:
PROGRAMME:
COURSE:
KWANELE NDLANGAMANDLA
202102769
BCOM (IDE)
MANAGEMENT INFORMATION SYSTEMS (BUS 211)
TEST 1
03 June 2023
a. Using Porter’s Five Competitive Forces model, describe the role of IT in competition for
a banking institution.
(20)
Porter's Five Competitive Forces is a model that identifies and analyzes five competitive forces
that shape every industry and helps determine an industry's weaknesses and strengths.
The role of IT in competition for a banking institution is to:
1. Build barriers to prevent a company from entering the banking industry.
Banks have adopted the know-your-customer (KYC) strategy of collecting clients’ data
giving them advantage to crucial information that would enhance their competitive
advantage from any new entrant to the banking industry.
Established banks have developed websites where customers and prospective customers
can reach out to all information about the institution and its product. Even applying for
loans and being a customer can be done online without visiting a branch.
Costs of compliance also play a major role in deterring new entrants. Established banks
have invested immensely to technological systems.
2. Build in costs that would make it difficult for customers to switch to other banking
institutions.
Automated teller machines (ATM) and online (internet) banking render the services of
tellers making banking a 24/7 experience and create convenience for customers to do
banking anywhere (at comfort of their homes or space) and at any time.
3. Change the basis for competition within the banking industry.
Enabled transactions with non customers through digital wallets such as e-wallet has
created competition among the institutions as customers and non customers enjoy
convenience. It is a battle of efficiency in delivery of this service for the institutions.
4. Change the balance of power between the institution and its customers or suppliers.
Banking institutions use the internet to get real-time feedback from customers and
prospects through their websites, social media pages and other internet platforms created
to interact with society.
5. Provide the basis for new products and services.
Banks are able to study customer trends through social media and interactions provided
for online to continuously provide new products and services.
Competitive Strategies used;
Low Cost Leadership Strategy
Product Differentiation Strategy
Focus Strategy
b. Using the value chain model of analysis, explain the role of information system in the
production of a UNESWA graduate. (Concentrate on the primary activities) (20)
The Value Chain model
1. Inbound logistics
This entails student application, admission and registration. Applications and registrations
can be done online through Uneswa website.
2. Operations
This entails student tuition invoicing.
3. Sales and marketing
This entails advertisements as call for applications through website, print media and radio.
4. Services
This entails lectures, timely assessments and examinations.
Lectures and assessments are done through physical means and also online through
moodle which is an educational platform offered digitally.
5. Outbound logistics
This entails the certification and graduation of student.