INFORMATIOM AND COMPETITIVE ADVANTAGES

Nowadays technology is very crucial to every organization.  This is because changes of technology have transformed the business practices in organization. Other than that, as the size of the company increase and the business are more global, it has become almost impossible for the top manager to know what is going on around them.  IS system not only consist hardware and software but it is a tool that can help the organization.  Information either for the present or future that been provide by it can be used for the marketer to gain competitive advantages.

In addition, to develop strategies to be used in the business practices an organization must first identified the competitive forces that exist.  One of the biggest forces is the rivalry.  In all types of business there will always be a rivalry.  Other than that, to compete in the market there will be new substitute products.  In addition, to satisfy the customer need an organization must comes with new idea and product that can capture the market share.  Other than product, organization also must take note on the bargaining power of the customers and suppliers.  This is because they play an important role in the sales of our product and services. Furthermore, there will be new entrants that will exist in the industry and the markets.  Thus, number of competitors will increase and we need to upgrade our business to a higher level to compete with them.  In addition, the main question here is how IT can be used to overcome all those forces.

However before that, there are five competitive strategies that can used to counter those forces.   It includes the cost leadership, differentiation strategy, innovation, growth, and alliance strategy.  Through the competitive strategies an organization can implement the technology for their business uses.  In differentiation, an organization can use the IT to promote their product and services that no one else had done.  With the uniqueness it had it can make business more appealing to other and increases the markets sales.  Furthermore, in innovation organization can create new product and service that include IT components.  Moreover, implementing an IS system can make the employee job more efficiently and easier for them to move to another task.  Other than that, the businesses that use IT can decrease the competitiveness differentiation with their rivalry in aspect such as product, services and capabilities.

(395 words)

REFERENCES

Leigh Goessl,” Maximizing information system to gain competitive advantages”, (Feb. 10, 2008)

Kevin Lee, “information is competitive advantage”, (December 7, 2007)

IEDP, “how to use information for competitive advantage”, (April 26, 2011)