The Internet and Information System That Contribute to Competitive Advantage

4381 WordsMay 15, 200818 Pages
AFF5200 ISSUES IN COMPETITIVE ADVANTAGE PROJECT I THE INTERNET AND INFORMATION SYSTEM THAT CONTRIBUTE TO COMPETITIVE ADVANTAGE PREPARED FOR Mr. Richard Laney By Wendy (20646836) Sara Prashanthi Ananthula (20107226) Kaushalya Abeysinghe (20139128) TABLE OF CONTENTS INTRODUCTION With the increasing global competition faced by businesses, it is important that in order to survive they have to put in place a highly effective Information Technology (IT) infrastructure to increase their chances of succeeding. In this…show more content…
Suppliers are powerful when there are only few companies and few substitute available to the customers. SOLUTIONS ACHIEVING COMPETITIVE ADVANTAGE USING INFORMATION SYSTEMS – PORTER’S GENERIC STRATEGY Firms use different strategies to prevent from competitive forces by using information technology and systems. There are four generic strategies which can be used as solutions to the above mentioned competitive forces which are explained below. (Source from www.12 manage.com)  LOW COST LEADERSHIP Using information systems firm can significantly reduce the cost obtaining, processing and the prices of the products, thus reducing the overall cost of the business. Example: Wal-Mart.  PRODUCT DIFFERENTIATION Firms apply information system, to introduce new products and services to their product line or change existing product and services to enhance the customer convenient. Example: Google, eBay, Apple, Lands’ end.  FOCUS ON MARKET NICHE Firms can use information systems to address a need for a product or service that is not being addressed by their competitors. Information system supports this strategy by analysing data which collected from different resources to create sales and marketing methods. Information system also helps to analyse customer buying patterns, customer tastes and preferences to achieve
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