Whats Happening?!Whats Happening?!Chief Information Officers (CIOs) expect IT budgets to increase by 2.5 percent in 2005, and beie!e their focus "i be on supporting business gro"th and resuts, according to a sur!ey by #artner Inc. In the past fe" years, CIOs ha!e had to focus on interna efficiency and cost contro, "hie preparing their organi$ation for an economic ups"ing. CIOs !oiced concerns about their reationship "ith the C%O and "hether they ha!e the right peope to meet current and future business needs. Ted &ennedy says that the soution for run'a"ay costs "ith (edicare is Information Technoogy.)T* Cinic)T* CinicTomorro", +ednesday at , to 5 *(Tomorro", +ednesday at , to 5 *(-as.in %ngineering, room /01.-as.in %ngineering, room /01.2esie Car. "i run the session.2esie Car. "i run the session.ISM ToastmastersISM Toastmasters3irst session on Thursday at noon.3irst session on Thursday at noon.%ngineering II buiding 4 room 210.%ngineering II buiding 4 room 210.Chapter 3Chapter 3The *orter Competiti!e (ode for The *orter Competiti!e (ode for Industry 5tructure )naysisIndustry 5tructure )naysis

AgendaAgenda*orter Competiti!e (ode*orter Competiti!e (ode4Ob6ecti!esOb6ecti!es4#eneric %xampe#eneric %xampe45pecific %xampe5pecific %xampe7aue Chain (ode7aue Chain (ode4#eneric %xampe#eneric %xampe45pecific %xampe5pecific %xampeCompetiti!e 5trategiesCompetiti!e 5trategiesPorter Model Objeti!esPorter Model Objeti!es-uid barriers to pre!ent a company from entering an industry-uid in costs that "oud ma.e it difficut for a customer to s"itch to another suppierChange the basis for competition "ithin the industryChange the baance of po"er in the reationship that a company has "ith customers or suppiers*ro!ide the basis for ne" products and ser!ices, ne" mar.ets or other ne" business opportunitiesIntra"Ind#str$ %i!alr$Strategi siness 'nit&argainingPo(er o)$ers&argaining Po(er o) S#ppliersS#bstit#te Prod#ts and Ser!iesPotential*e( +ntrants3igure /'05ource8 (ichae %. *orter93orces #o!erning Competition in IndustryHarvard Business Review, (ar.')pr. 0:;:Porter Competiti!e ModelPorter Competiti!e ModelIeta, eta, =5 )ir, epartments appro!ed a pact that "i et >eta )ir 2ines, Continenta )irines and eta fight number. The agreement is the biggest in the industry.=5 )ir"ays and =nited )irines ha!e a simiar agreement.Code Sharing AgreementsCode Sharing AgreementsItNs an especiay appeaing arrangement to freKuent fiers "ho prefer to buid up mies on one airine "hie fying a three. The go!ernment paced se!era conditions on the dea. 5pecificay, the >OT said B0 percent of any ne" code'sharing routes must ser!e those areas of the country that are considered under'ser!ed.It aso bans anti'competiti!e practices i.e coordinated pricing or shared decisions about route panning and capacity.&arriers to +ntr$&arriers to +ntr$)ccess to airports continues to be impeded by8 (0) 3edera imits on ta.eoff and anding sotsat the ma6or airports in Chicago,