Step 1: Analyse the case scenario below The car service business is associated with an automobile dealership, and many cars that are booked for service are under warranty from a purchase from the car dealer. Other car owners of the same manufacturer (for example Toyota) are able to have their cars serviced at this business too. However, car servicing is highly competitive and expensive. To secure new and repeat business, the repair / service arm of the dealership offers after-sales service in the form of a free courtesy car when the car is being repaired or serviced for the day. To secure bookings for a service, car owners are able to book in their car via a new online service booking system. This system enables the owner to specify any 'problems' with the car's running, and to choose extra services such a car wash, and/or internal clean. The new online system also gathers details of the customer such as email address, telephone number, insurance company, annual premium paid, odometer reading, and insurance rating. From this information, the new information is able to generate specific email to the car owner offering competitive prices on insurance, motoring holidays, and provides information for car salesmen to ring the owner offering a trade-in and new cars for sale.

Step 2: Answer the questions below 1. Describe the competitive forces in the car service industry, and rate each force as either High, Medium, or Low and include a justification. (2 mark). 2. Describe the competitive strategy of the car service business in the scenario (1 mark). 3. Using Porter's Value Chain model, identify the information system described in the scenario, and classify it as either a primary or secondary activity. Justify your decision. (1 mark). 4. How does the new information system improve decision-making for the employees? ('I mark).

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