Strategic Advantage Through Competitive Strategies and Information Technology
Strategic Advantage Through Competitive Strategies And Information Technology
Strategic Advantages Through Competitive Strategies And Information Technology
Strategic Advantage is a broad term. I first tried to find what this meant through a Google search and much of what I got was the definition for military strategic advantage. The textbook goes into great detail of how companies can have strategic advantage through five competitive strategies, and the different ways businesses can employ IT into their business strategy. Examples are shown through examples from the textbook and from an online journal discussing the use of the iPad in the work place.
Strategic Advantage
Strategic Advantage can mean several different things. It can mean having a different business strategy, providing a product to consumers they cant get anywhere else, offering a unique service, or using information technology to better ones business. Many businesses try to have a strategic advantage to compete against other companies who are a competitive force. History has shown us that although a company might have the upper hand in a product, service, or technology for a while, eventually another company will come along with something as good or better. Michael Porter states that “in order for a company to survive and succeed must effectively develop and implement strategies to counter the rivalry of competitors within its industry, the threat of new entrants into an industry and its markets, the threat posed by substitute product that might capture market share, the bargaining power of customers, and the bargaining power of suppliers” (OBrien & Marakas, 2010, p.44). To prevent the entrance of new businesses or businesses of the same market there are several strategies a business can implement. The Cost Leadership Strategy implies that if a business can become a producer of either products or services, or helping consumers or suppliers lower their costs will give a business a strategic advantage. The Differentiation Strategy implies that a business can differentiate themselves through their products or services by focusing on a section of the market. The Innovation Strategy implies that a business “should find new ways of doing business”. (OBrien & Marakas, 2010, p. 48) For example, a business could reengineer their processes, or try and do things differently from the different businesses in their industry. The Growth Strategy says that if a business is able to expand their business by entering foreign markets, or integrating into other markets, they will have a more competitive advantage. For example, The Dish Network purchase of Blockbuster. The last strategy listed in the book is