MANAGEMENT OF INFORMATION TECHNOLOGY - Essay Example

Download file to see previous pages DMG’s goals are to upgrade healthy living by producing high quality products, to preserve the environment and to create sustainable returns for stakeholders.
The model will focus on five attributes that make up the competitive environment namely supplier power, buyer power, competitive rivalry, the risk of substitution and lastly the risk of new entrants. With regard to the supplier powers, the suppliers play a minor role, if any, at raising the prices of DMG products (Oz, 2009, p.18). This is because the company owns most of the critical factors of production. For tea and Coffee production, DMG own farm estates for production of the crops, suppliers only provide packaging materials (Beynon-Davies, 2013, p. 376). A higher cost of the packaging materials would result in DMG transferring the additional cost to consumers by raising prices. The same applies for yogurt production, as the company owns dairy livestock, suppliers come in to provide flavours and packaging materials.
Buyer power is detrimental to affecting the nature of prices within the market. DMG has a fairly larger number of consumers for its products. Essentially, the company cannot, under any circumstance dictate the terms of buying (Beynon-Davies, 2013, p.402). Given the fact that other brands of tea, coffee and yogurt the buyers may easily switch to other supplier of the same. Rivalry from competitors does not really lower the attractiveness of the market (Betz, 2001, p.29). Two firms in agribusiness provide competition to DMG but the major threat is one firm that enjoys a large market share because of an extensive information technology system (Proctor, 2011, p.16). DMG is taking measures to turn the tables in the industry and extend the domestic market share. Substitution seems to be a minor threat for DMG because of the coffee and tea are substitutes. In ...Download file to see next pagesRead More