MBS- Achieving Competitive Advantage with Information System

(Tutorial 5 -worksheet)

Q1
They are not able to meet the customer's requirements. It is geared towards maximizing capacity of the company, and not the customer's requirements. However, they do not bother about retaining their customers as they don't have any threats of new entrants, not other close substitutes.
This is an impact on businesses performance of AutoNation and of auto manufacturers, due to the foreign new entrants, customers now have a wider range of choices compared to before. Therefore, company have to divert their focus from maximizing the profit to costomer's requirement.


Q2
The family size, budget, income level, age, occupation, recreational interest.
The above datas are retreivable from external datas like surveys, or internal datas like sales record.


Q3
Using data mining to obtain information from their sales record. As the same time, sharing data from the manufacturer, to aid in demand forcasting, supply planning and product design. In return, integrate the customers data together with the manufacting processes, thus improving customers' relationship.
Obstacles like the lack of forsight and good culture in the employees must be overcome by AutoNation. It will be effective to a small extent. As culture ought to be in within the company to guarantee a benefit.