Five competitive forces shape fate of firm

1. Traditional competitor
2. New market entrants
3. Substitute product and service
4. Customers
5. Suppliers

Advantage of internet technology services

1. New infrastructure wealth creation

2. New business model
3. New sources of values
4. Created by brain not by brown
5. New education model and institution
6. New governance
7. Unique product and services
8. Foundation of new culture, identity, citizenship

traditionally databases rely on.

on the tables that are organized as columns and rows, however much of the data collected now
days don't fit the relational data basis.

big data : describes data sets with volumes so a huge they are be went the ability of the
traditional database management system the term big data does not refer the specific volume
of data.

and it is usually measured by (pata byte) , ( exa byt ) , ( zeta byte). types it includes

1. structured data
2. semi-structured data
3. unstructured

components

1. hadoop : open source software that an able distributed parallel processing of huge
amount of data

these software breaks huge problems into smaller once and process such one by using
distributed parallel processing

2. in-memory computing : it means using computers main memory for data storage
3. analytical capabilities platform: uses both relational and nonrelational technology that
is optimize for analyzing a huge data
advantage of cloud computing

1. no need to invest huge capital.

2. no hardware to purchase and low-cost.
3. no operating system or data base servers.
4. application sewers
5. better flexibility

disadvantage

1. possible downtime without internet connection

2. security risks and chances
3. responsibility of data storage and process don't response of firm.
4. Inflexibility issues
5. Technical issues

Tools for Improving Business Performance and Decision Making

Data warehouse:

Stores current and historical data from many core operational transaction systems Consolidates
and standardizes information for use across enterprise, but data cannot be altered Provides
analysis and reporting tools

Data marts:

Subset of data warehouse Summarized or focused portion of data for use by specific population
of users Typically focuses on single subject or line of business

Data mining:

1. Finds hidden patterns, relationships in datasets

Example: customer buying patterns

2. Infers rules to predict future behavior

Types of information obtainable from data mining:

1. Associations
2. Sequences
3. Classification
4. Clustering Forecasting
• Online analytical processing (OLAP)

– Supports multidimensional data analysis

• Viewing data using multiple dimensions

• Each aspect of information (product, pricing, cost, region, time period) is

different dimension

• Example: How many washers sold in the East in June compared with
other regions?

– OLAP enables rapid, online answers to ad hoc queries

– Web 2.0 services and tools

• Blogs: chronological, informal Web sites created by individuals

1. RSS (Really Simple Syndication): syndicates Web content so

aggregator software can pull content for use in another setting or
viewing later
2. Blogosphere
3. Microblogging

• Wikis: collaborative Web sites where visitors can add, delete, or modify
content on the site

• Social networking sites: enable users to build communities of friends

and share information

– Web 3.0: The “Semantic Web”

1. A collaborative effort led by W3C to add layer of meaning to the existing

Web
2. Goal is to reduce human effort in searching for and processing
information, making Web more intuitive
3. Increased communication and synchronization with computing devices,
communities
4. Internet of Things
5. Visual Web
6. Increased cloud computing, mobile computing
What is the Alibaba website?

Alibaba owns stakes in all sorts of things,

alibaba operates chiefly through three sites:

1. Taobao, China's biggest shopping site;

2. Tmall, which specialises on online sales of branded goods and focuses on China's fast-
growing middle class; and
3. Alibaba.com, which connects Chinese exporters with companies elsewhere in the world.

Alibaba business model:

1- Alibaba acts as a middleman between buyers and sellers online and facilitates the sale
of goods between the two parties through its extensive network of websites
2- The largest site, Taobao, operates as a fee-free marketplace where neither sellers nor
buyers are assessed a fee for completing transactions.
3- Tmall is the e-commerce site owned and operated by Alibaba that caters to well-known
brands, including Gap .

Alibaba's Five Advantages :

1- The first advantage is location-China.

With 560 million Internet users spending 20 hours a week online
2- The second advantage is economies of scope
the cost savings associated with the offering for sale of different products by a
single corporation through the same sales channels.
3- The third advantage is scale, the cost savings associated with a larger volume of sales.
4- The fourth advantage, and perhaps the most important, is networking.
the benefits arising from an expanding network of users of a product or service.
5- The fifth advantage is Alibaba’s good relations with the Chinese government.

Alibaba VS amazon:

Amazon already acknowledged that to compete with Alibaba in China they would need to spend
enormous amounts of money

The main reasons for this are the following:

1- Alibaba has already built a strong ecosystem and a strong brand in China.
2- In China, government plays a very important role.
• Traditional competitors
– All firms share market space with competitors who are continuously
devising new products, services, efficiencies, and switching costs.
• New market entrants
– Some industries have high barriers to entry, for example, computer
chip business.
– New companies have new equipment, younger workers, but little
brand recognition.

• Substitute products and services

– Substitutes customers might use if your prices become too high, for
example, iTunes substitutes for CDs
• Customers
– Can customers easily switch to competitor's products? Can they
force businesses to compete on price alone in transparent
marketplace?
• Suppliers
– Market power of suppliers when firm cannot raise prices as fast as
suppliers