TOPIC 1: INFORMATION AND COMPETITIVE ADVANTAGES

Information and competitive advantages is about two organizations produce who have same product, have to compete to each others to gain more profit, increase sales and improve customer’s satisfaction of their product. In other words, the organizations want to perform better and effectively than other organizations which were in the same industry or same market demand and condition.

Due to Wikipedia, the encyclopedia, competitive advantages were defined as the strategic advantages on business entity has over its rival entities within its competitive industry. It will occur when the organizations want to develop or want to perform their output more than competitors. It is about how they put their organizations as major threat competitor and how they want to be the best among other organizations. The difference should be in term of product and service that they provide to the market and may be their better capabilities than others.

A competitive advantages were a combination of Human Resource(HR) with Information System(IS). Just like what I had mentioned earlier, this is about to increase the organization’s profit, increase sales and improve customer’s satisfaction as well as to improve communication among them and to meet their goals and objectives.  Example use of Information System(IS) technology involves system that can link the organizations to suppliers, distributions and customers. The best example is Enterprise System(ES) which help the organizations to develop in the corporate use of technology and this system brings many benefits to the organizations such as can improve their data and information folders, streamline the organization’s data flows , help to forecast the sales and productions and provide management with direct access to wealth of real- time operating information.

There are five competitive strategies can be used by organizations in order to achieve their desired goal and to ensure survival of their organizations in the current market. They are cost leadership, differentiation strategy, innovation strategy, growth strategy and alliance strategy. Cost of leadership means to create a low cost of operation in order to gain advantages over competitors. Differentiation strategy aims to develop a market unique product for different customer segments. Innovation strategy deals particularly with the growth strategy of an organization as well as alliance strategy through the development of new products and services.

As conclusion, an organization can gain profit, can create customer dependency, can create long term relationship with customer, can reduce cost, can make customer network and access their organization site and lastly will get others advantages if they know the appropriate way to manage it.  

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