The Strategic and Tactical Role of It

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3. Which of Porter’s three generic strategies is MLBAM following? According to the given case, the Major League Baseball Advanced Media (MLBAM) generates revenue of approximately $450 million per year, which is a significant portion of source of revenue for Major League Baseball that has total revenue of $6 billion per year. Of $450 revenue MLBAM generates, half of revenues come from fans that pay $120 a season to watch games on the Internet, and the rest comes from advertisements available next to its online contents. It seems to me that MLBAM makes most, if not all of its revenue by concentrating on a limited part of the market, which follows focused strategy of Porter’s three generic strategies. MLBAM has competitive advantage in unique highlights producing information system and keeps their market narrow by strategically focusing it to their fans. Since MLBAM obviously benefits from specialization, and can charge high cost for its service, I would say that MLBAM follows focused strategy. 4. How could MLBAM use porter’s value chain analysis to detect competitive advantages? Porter’s value chain analysis is made up of series of activities that create and build value in each activity to determine the development of competitive advantage. As any other businesses would desire, MLBAM would also want to guarantee the processes add value and create competitive advantages. For example, MLBAM could use porter’s value chain analysis to see if they are optimizing resource allocation, or correctly pricing products to sustain efficiency, and profits along with their strategic objectives. 5. Predict what might happen to MLBAM if it failed to secure its subscriber information and all personal information – including credit card numbers – was accidentally posted to an anonymous website Although I do not have a degree in business law, I believe that such an
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