Outsourcing to Meet Customer Needs

663 WordsFeb 24, 20183 Pages
There’s a few method that can be implement in D’Herbs to overcome challenges they faced. One of the most critical methods is by outsourcing. By outsourcing, they could just focus only in creating better products to meets customer needs. Where, other departments in the company are outsourced. Company gained competitive advantages through real or actual value to customers that they provided. The organizations must know their products, services, customers, competitors, industry, related industries, and environment forces in determining how IT can provide them with competitive advantage. Not to mention, they also need to have understanding about how IT can boost value for each of the areas. There are three characteristics of resources that give the firm potential in gaining competitive advantage. The three characteristics are value, rarity, and can be obtained. Value, rarity, and can be obtained, are used to characterize resources that contribute to initial competitive advantage. To sustained competitive advantages, the resources must be imitable, imperfectly mobile, and have low substitutability. Imitability is, whether other will be allowed to imitate or copy the resources. Mobility is the easiness of an organization to acquire the resources to imitate. Example of it, are hardware and software that are easily obtained. Finally, substitutability is the ability of others to make use of substitute resource. Outsource development, or outsourcing, can happen when a third party were
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