Sunday 1 April 2012

IS for Competitive Advantages


I learnt this topic in the early of the semester. This topic is a simple topic which tells about the competitive advantages that can be gained by using information system. Information technology (IT) and information system (IS) both plays vital role in this upgrading world. The IT and IS are not only for the business purpose, but also for the all other purposes in this world.

There are five competitive strategies that can be used to gain the advantages. The first one is the cost leadership. This competitive strategy can be done by becoming a low-cost producer. Example of this method is by using online seller bidding so that buyers can determine the price that they want to buy that certain product.

Then, differentiation strategy can also be used to gain advantage by using IS. Differentiation strategy is about the ability to differentiate any products or services from the competitors. For instance, Jusco is using online facilities to enable customer shops online, differing from other hypermarket that should be attended by the customer.

Next is about innovation strategy. The innovation strategy can be used by producing unique products, services or markets. The real example of innovation strategy is the Amazon’s online which implemented a full-service customers system.

The growth strategy can helps in term of expanding the company’s capacity to produce. This can be made by expanding the markets to a higher level. For example, Wal-Mart is expanding its market by allowing merchandise ordering via global satellite tracking.

Lastly, alliance strategy can be used to establish linkages and alliances with customers, suppliers, competitors, consultants and any other companies. This alliance strategy includes mergers, acquisitions, joint ventures and virtual companies. The example is Wal-Mart is using automatic inventory replenishment by supplier.  

As now we are in the globalization era, all aspects must be suit to keep abreast of the rapid development of the world.


How to compete? 





No comments:

Post a Comment