Fsa Case Study
The importance of Information Technology (IT) / Information System (IS) in business is undeniable. The effective gathering of information can help business leaders make decisions in order to reach a competitive advantage. Michael Porter and Victor Millar’s paper on “How Information Gives You [business] Competitive Advantage” is a clear framework for businesses in order to achieve competitive advantage and profitability. Porter’s model revolves around five forces that are supplier power, buyer power, barriers to entry, threat of substitutes, and rivalry. This paper is a case study of porter’s model based on Food Services of America’s (FSA) business strategy.
In order to achieve a competitive advantage, FSA’s strategy rest on three main area that are cost reduction, product differentiation, and the target of a niche market. The high cost of food price as indicated on FSA’s home page is a leading indicator that food distributors need to provide high quality service at a low cost to customers. The reduction of food costs and delivery charges to customers make for a close and long lasting relationship between FSA and its buyers. Another element of FSA’s strategy is product differentiation. As a part of Services Group of America (SGA), FSA has a close relationship with companies such as Systems Service of America, which specializes in “system distribution for quick service and casual dining among other,” and Amerifresh in fresh fruits and vegetables. The diversification strategy is also apparent in the relationship with Ameristar Meat and GAMPAC as an expert in logistic. Finally, FSA’s decision to target the West and Midwest market of the United States helps in achieving a competitive advantage.
According to Porter and Millar,” Competitive Scope is a powerful tool for creating competitive advantage”(Porter
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