Nowadays,
information technology plays a very important role in many business processes.
It helps in increases process efficiencies, improves communication, and
facilitates collaboration. Besides that, using a strategic information system
in the business process can develop their competitive advantage. What is
competitive advantage? Competitive advantage is an advantage that a firm has
over its competitor. If an organization they have a very high competitive
advantage compare with others, they are able to generate more sales or profit
compare with their competitors.
Besides that, they also have
ability to retain their customer continue purchase their product or services.
With that, it will increase confident to their stakeholders to cooperate with
that particular firm. As we know, each kind of business they will faces the
different competitive forces from their rival. Therefore, they must develop a
constructive strategy in order to deal with that forces and success from the
challenges. As an example, Facebook currently is the most popular social
website compare with Friendster because many of people use it services.
There are few type of strategy can be use to encounter with
competitive forces. However, in my opinion, the cost leadership is the most
effective strategy in managing competitive. The cost leadership might help an
organization become a low-cost producer. With that, it will produce a
reasonable price with a quality product which can help customer save their
costs too. Therefore, it can increase their share in market and gain a
competitive advantage from their competitor. A competitive advantage exists
when a firm is enabling to provide some benefit as their competitor but with a
lower cost and provided extra benefit that exceed competitor product.
Besides that, the differentiation strategy will highlight the
uniqueness of your firm among your competitor and innovation strategy pursue
that your product is unique among the market product. For instance, Daiso is a
trade that providing a product that import from Japan which is operating by 3
values which are quality, variety and uniqueness. This is the one of reason
Daiso can expand their business to 24 countries and now they have totally 3078
stores around the world. Therefore, we can concluded that Daiso also implement
the growth strategy in their business because they are able to expand the
company's capability and expand into global market.
References:
No comments:
Post a Comment