MBA (General) - IV Semester, Information Technology and E-Business, Unit 1.2
Use of Competitive Strategies
The individual advantages of the firm determine the firm’s ability to deal with threats from the market. In other words, how do firms compete?
Use of Competitive Strategies
The individual advantages of the firm determine
the firm’s ability to deal with threats from the market. In other words, how do
firms compete?
Product Differentiation use of innovation to
produce different products or services that cannot be easily copied. The firm
attempts to develop brand loyalty. This strategy can address threats such as
position of competitors and substitutes.
Focused Differentiation the firm uses a niche
strategy, it targets its product for a specific section of the market. It tries
to serve the market segment better than the competition. This addresses
position of competitors and new entrants.
Develop tight links to customers and suppliers
the firm can try to lock in either suppliers or customers. They try to lock
suppliers into a delivery time table and price structure. They also can try to
lock buyers into a price structure. The idea is to raise the switching costs of
the supplier/buyer or try to lower the bargaining power of the supplier/buyer.
This addresses bargaining power threats and position of the competitors.
Become the Low Cost producer Offer the same
quality or level of service as competitors at a lower price. This address the
threat of new entrants and the position of the competitors.
Establish Partnerships participants in
partnerships can share costs, benefits and risks. Often this redefines the
firms relationship with competitors. This address the position of competitors
and the threat of new entrants.
Quality Management
Methods of Quality Control, Audits, different
strategies used in TQM (Total quality management) are dealt with in this area.
As Quality cannot easily be defined, the study of Quality Control and its
upkeep deserve our keen involvement and interest.
IT can be used to develop new products or
processes or to improve existing products and processes so as to achieve a
competitive edge in the market or to effect significant improvements in
internal operations. The natural potential importance of IT for an organization
depends upon the information intensity of processes and the information content
of the products. The strategic use of IT in an organization is necessary for
the bending of the IT strategy into the corporate strategy.
