Page 147 -

Chapter 3 Strategy and Information Systems
146
3-14. YourFire, Inc., is a small business owned by Curt and Julie Robards. Based in
Brisbane, Australia, YourFire manufactures and sells a lightweight camping
stove called the YourFire. Curt, who previously worked as an aerospace
engineer, invented and patented a burning nozzle that enables the stove
to stay lit in very high winds—up to 90 miles per hour. Julie, an industrial
designer by training, developed an elegant folding design that is small,
lightweight, easy to set up, and very stable. Curt and Julie manufacture the
stove in their garage, and they sell it directly to their customers over the
Internet and via phone.
a. Explain how an analysis of the five competitive forces could help YourFire.
b. What does the YourFire competitive strategy seem to be?
c. Briefly summarize how the primary value chain activities pertain to YourFire.
How should the company design these value chains to conform to its
competitive strategy?
d. Describe business processes that YourFire needs in order to implement its
marketing and sales and its service value chain activities.
e. Describe, in general terms, information systems to support your answer to
part d.

3-15. A friend of yours from college, who you haven’t talked to in 3 years, sends
you an email asking you to meet him for lunch. He says he’s got a great idea
for a business and wants to run it by you. At first you’re hesitant because your
friend, while obviously intelligent, doesn’t always think things though. You agree
to meet for lunch and talk about the idea. At lunch, he explains that he’s been
developing new flexible screens for his employer that are incredibly tough,
waterproof, and use very little energy. His idea is to use these new flexible
screens to create wearable computing clothing that can connect directly to
smartphones and push ads, promotions, and video. His only problem is that he
knows nothing about business. He’s not sure where to start.
a. Explain how you could use the five forces model to help your friend
understand the potential success of his wearable flex screens.
b. How might understanding the unique forces affecting this industry determine
the competitive advantage for your friend’s new company?

enDnoteS

1. Michael Porter, Competitive Strategy: Techniques for Analyzing Industries 9. https://nest.com/works-with-nest/
and Competitors (New York: Free Press, 1980). 10. J. Markoff, “Researchers Show How a Car’s Electronics Can Be Taken
2. Based on Michael Porter, Competitive Strategy (New York: Free Press, Over Remotely,” The New York Times, March 9, 2011, p. B3.
1985). 11. For a fascinating glimpse of this story from someone inside the
3. For simplicity, the flow of cash is abbreviated in Figure 3-8. Business company, see “Early Amazon: Auctions” at http://glinden.blogspot.
processes for authorizing, controlling, making payments, and receiving com/2006/04/earlyamazon-auctions.html, accessed August 2012.
revenue are, of course, vital. 12. http://www.amazon.com/b?ie=UTF8&node=8323871011.
4. Chris Welch, “Mercedes Built a Self-Driving Truck That Could Save 13. Andy Meek, “Amazon’s Roadmap for 2015: Move Fast, Launch as
Thousands of Lives Every Year,” The Verge, October 7, 2014, accessed Much as Possible,” BGR Media, April 24, 2015, accessed May 16,
April 10, 2015, www.theverge.com/2014/10/7/6939809/mercedes-self- 2015, https://bgr.com/2015/04/24/amazon-earnings-q1-2015-analysis-
driving-truck-could-save-thousands-lives-each-year. roadmap.
5. Lee Matthews, “Amazon Files Patent for 3D Printing Delivery Trucks,” 14. George Anders, “Amazon’s Drone Team Is Hiring: Look at These
Geek.com, February 25, 2015, accessed April 10, 2015, www.geek.com/ Nifty Job Ads,” Forbes, accessed May 22, 2014, www.forbes.com/sites/
news/amazon-files-patent-for-3d-printing-delivery-trucks-1616525. georgeanders/2014/05/19/amazons-drone-team-is-hiring-look-at-these-
6. Maxwell Wessel, “Making Sense of Über’s $40 Billion Valuation,” nifty-job-ads/.
HBR.org, December 10, 2014, accessed April 10, 2015, https://hbr. 15. Bart Jansen, “FAA Approves Amazon Drone Research Again,”
org/2014/12/making-sense-of-ubers-40-billion-valuation. USA Today, accessed April 30, 2015, www.usatoday.com/
7. The information system described here is used by a major transportation story/money/2015/04/09/faa-amazon-drone-approval-prime-
company that did not want its name published in this textbook. air/25534485.
8. P. Middleton, P. Kjeldsen, and J. Tully, “Forecast: The Internet of Things, 16. “Fulfillment by Amazon Fee Changes 2015,” Amazon.com, accessed
Worldwide, 2013,” November 18, 2013, accessed April 18, 2015, April 30, 2015, www.amazon.com/gp/help/customer/display.html/?node
www.gartner.com/doc/2625419/forecast-internet-things-worldwide. Id=201119410.