Assignment Task
Task
Go-Cycles, a bicycle shop with stores across Queensland has found that its revenue has been steadily dropping over the last few years. One of the reasons for this is that Go-Cycles has not updated its use of information systems and processes for over five years. Rather, it has just relied on its local customer base continuing to shop with them, which has not been the case. Currently, customers cannot even order a bicycle or bicycle gear online. There is
no centralised database nor is data used to learn about customers or to support decisionmaking. Likewise, inventory ordering is undertaken manually which leads to very slow links between suppliers and stores. You have started working with Go-cycles as a business analyst. Your manager is keen to explore how information systems strategies can help to turn the fortunes of the business around. Your manager has already understood, through the use of Porter’s Five Forces model, that the competitive environment explains the situation of the business. In particular, new entrants, better practices by competitors and more attractive pricing by competitors is driving the sales of down and eroding Go-cycles’ market position. In response to this your manager has asked you to explore different information systems strategies that can make the business more competitive.
Q1a. Describe only two of the Information System Strategies from the list below that GoCycles could adopt (200 words) (2 marks). Select from:
(i) Basic strategy/Align IT with business objectives;
(ii) Low-cost leadership;
(iii) Product differentiation;
(iv) Focus on market niche;
(v) Strengthen customer or supplier intimacy.
Q1b. Explain how each of the Information Systems Strategies you identified could support
Go-Cycles to be more competitive (200 words) (4 marks)
Q1c. Provide a real-world example1
for each information systems strategy you identified to show how it is applicable in practice
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