Business Strategy

Five Forces Analysis

Force	DSW Example	Force Strength	DSW Response
Bargaining power of customers	Customers can buy from other retailers including those selling similar products online	Moderate	Offer competitive slightly lower than competitors and consider entering other markets
Threat of substitutions	Consumers find footwear a necessity and they must buy it from DSW or other providers	Low	Differentiate the company services considering shipping and transportation among others
Bargaining power of suppliers	More suppliers exist to deliver the materials	Moderate	Negotiate with multiple suppliers to deliver the products thus minimize related costs
Threat of new entrants	Other companies like Rack Room Shoes and Famous Footwear among others offer similar products	Moderate	Consider other markets to enter
Rivalry	Multiple competitors in the industry with similar offers	High	Offer various after sales services and incorporate discounts during specific periods

Despite the existence of competitors in the industry, it remains profitable because every consumer considers footwear a necessity and they must purchase them. This includes the trending footwear. This makes the industry profitable. 

Competitive Strategy

	Cost	Differentiation
Industry-Wide	Price leader offering attractive discounted prices unlike competitors in the industry	Highly differentiated products across the footwear industry
Focus	Focus on low cost in the footwear segment of the industry	Offer the best quality footwear and quality services unlike the competitors

DSW offering attractive and discounted prices that consumers find enticing and compelling them to make a decision to buy from this store. This is strategically done in the industry unlike the strategies employed by competitors. This enables DSW control rivalry in the industry and the bargaining power of customers. The company’s services are highly differentiated in terms of aspects like transportation which is a strategy to minimize the threat of substitutes in the industry and new entrants. Likewise, DSW focuses on low cost in the footwear industry to manage the bargaining power of customers by keeping prices low. Furthermore, best quality footwear and services are offered to enable DSW distinguish itself from the competitors in the industry. 

Value Chain and Business Processes 

The primary activities in the DSW value chain include inbound logistics, operations/manufacturing, outbound logistics, sales and marketing, and customer service. For inbound logistics, DSW receives and stores its brands like Vince Camuto, Crown Vintage, Keds, and Lucky Brand. The same case applies to popular brands like Adidas, Nike, Brooks, and Steve Madden. For operations/manufacturing, DSW only makes the final products available to the consumers in need of them. The outbound logistics for DSW includes activities like collecting, storing, and distributing various footwear to the buyers in various locations. DSW is also involved in sales and marketing where it induces consumers to purchase brands it sells through actions like offering huge discounts among others. Finally, customers services are offered depending on the footwear purchased. 

On the other hand, the business processes that play a critical role at DSW include the inventory tracking system and the sales systems. The use of these systems enhances the flow of footwear to and out of the store and improves efficiency of operations in the industry. 

How Information Systems Support Strategy 

DSW utilizes various examples of information systems to run the company operations. For instances, the sales process it uses is the Point of Sale (POS) systems as a structured process. This system enables DSW to process payments faster and log various types of transactions related to handling of footwear in the company. Likewise, the inventory management process used by DSW is the inventory tracking system. This enables DSW to manage its inventory effectively and keep the right levels of stock at all times.