How Information Technology can be used to implement the basic competitive strategies? Explain minimum five strategies with an example.

A Management Information System ICT Revision Questions and Answers

Answer
Businesses today really need to know how to implement information technology into their business to keep up with the competition. There are many aspects to information technology, and unless a business does work specifically in this area, they may need to hire an IT manager who knows about the field. They can implement an information technology strategy that specifically suits the goals of a company.
The target of the strategy can be either the forms of technology being used or the people who are using it. There is a principle from a business expert that an IT strategy has to focus on the strategy creating and measuring the value of the business from the perspective of the investment put into the Businesses today really need to know how to implement information technology into their business to keep up with the competition. There are many aspects to information technology, and unless a business does work specifically in this area, they may need to hire an IT manager who knows about the field. They can implement an information technology strategy that specifically suits the goals of a company.
The target of the strategy can be either the forms of technology being used or the people who are using it. There is a principle from a business expert that an IT strategy has to focus on the strategy creating and measuring the value of the business from the perspective of the investment put into the employment of IT.

The minimum five strategies with example are as follows:
a. Lower costs: use IT to substantially reduce the cost of business processes and to lower the costs of customers or suppliers e.g Priceline.com where Online bidding where buyer sets the prices.
b. Differentiate: develop new IT features to differentiate products and services, use of IT features to reduce the differentiation advantages of competitors, and to focus products at

selected market niches e.g. DHL, customer online shipment tracking results increase in market share.
c. Innovate: create new products and services that include IT components, develop unique new markets or market niches with the help of IT, make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency, or customer service or shorten time to market eg. Amazon.com, online full service customer system which had market leadership
d. Promote Growth: Use IT to manage regional and global business expansion and diversity and integrate into other products and services e.g. Wal Mart Merchandise the ordering global satellite network which makes it market leader
e. Develop alliances: Use IT to create virtual organizations of business partners and develop inter-enterprise systems linked the Internet and extranets that support strategic business relationships with customers, suppliers, subcontractors and others e.g. Cisco system developed virtual manufacturing alliances to become agile market leadership.



(Visited 16 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published. Required fields are marked *