Management Information System - Retail Sector

2298 Words Feb 17th, 2007 10 Pages
Introduction

Industries in our modern day are facing tremendous pressures or drivers like society conformation, technology innovation and market competition. These three forces describe by Boyett and Boyett, (1995) catalyzed an organization to initiate goodwill responses, improve their technological platform and invent systems to automate their operational processes. These are efforts contributed to retain their competitive edge thus preserving their existence.
In the context of this essay, we will be using the consumer electronics retailing industry as a focal point for arguments. We will also discuss the following:

• Market, Technological and Societal Pressures and how it affects the industry.
• The industry responses to these
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Finally, the reports generated were often not accurate enough.

3. Powerful Customers
Customer demands and needs are getting more sophisticated. High standards of service level are an essential expectation these days.
With the availability of the Internet, customers are now able to source for information about the products they want, do competitive price comparison and look for other channels of purchasing (Turban et al, 2006: 14-5). With online auctions and classifieds websites like Ebay and Yahoo Classifieds, it does offer another alternative for the prospective customer.

Technological Pressures

Moore's Law originated from Gordon Moore, the co-founder of Intel implies that the processing power of silicon chips would double by every eighteen months (Moore, 1997).
In relevant to that claim, we could assume that computers in general would gradually improve in performance.
Faster processing computers would allow one to do more tasks using less time. This chain reaction leads to an increase in productivity.
With the rapid advancement of technology comes together with the importance of keeping pace with it. Failure to do so could diminish one's competitiveness especially so if the other competitors are leveraging on the latest technological platform.

Societal Pressures

Turban et al (2006: 15-7) states that pressures deriving from the society are known as societal pressure. Societal pressure could be differentiated into social responsibility,

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