I learn information system ( IS ) related with competitive advantage ( CA ) in this topic. IS is comprised of hardware, software data, people, and procedures, by producing insights that lead to action that produce information may allow a organization to gain CA. Besides that, Competitive forces drive organization to succeed, the term is local flexibility, leveraging knowledge/sharing, global efficiency, rivalry, threat of new entrants, threat of substitute products. In addition, bargaining power of customers and bargaining power of supplies.
Porters’s Model is strategic thrust divide to differentiation, cost, innovation, growth in addition, alliance. An organization develops its competitive strategy based on how it intends to respond to these forces to achieve their goals and objectives. A company can choose one of competitive strategies to help it respond to the structure of its industry. For example, be the cost leader across its industry, differentiate its products from others across its industry, be the cost leader in an industry segment and differentiate its product in an industry segment.
Information systems can help create a competitive advantage by being part of the product or by providing support to the product. A company can gain a competitive advantage by using business processes to lock in customers and suppliers, create entry barriers, establish alliances and reduce costs.
Figure ; Porter’s Five Forces Model of Industry Structure
In conclusion, using competitive strategies to gain a competitive differentiation on products, services and capabilities that company emphasizes strategic business use of IT. The key to a company’s competitive advantage is to increase the margin of its products by adding value, reducing costs, or both. IS uses to support an organization’s competitive strategies for plain gaining and maintaining advantage known as strategic information system ( SIS).
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