Information Technology
(IT) is in line with technological changes that helped businesses to reshape
output of products, services and information that are provided to customers to
build value to its customers. While, according to Harvard Business Review
(1985), it is stated that information can provide a competitive advantage by
giving companies new ways to outperform their competitors and spawns new
businesses, often from within the company's existing operations.
Furthermore, human resource operations is considered as a benefits of HRIS, Ngai
& Wat (2004). Besides that, there are five competitive forces
which are, rivalry within an existing industry, threats of new entrants,Shin (2001). substitution products, and bargaining power of the customers and suppliers.
Whereas, Porter (2001) justifies even there is a change in terms of suppliers,
channels, substitutes or even competitors but still the competitive forces determines
the profitability.
Here, i would like to give brief example of the business that are
related to those competitive forces which is Al-Ikhsan Sports and Royal
Sporting House which is selling sports goods. One thing that i can say is
Al-Ikhsan would gain competitive advantage because in terms of prices people
tend to choose Al-Ikhsan as a substitutes because on price differences. Other
than that, Al-Ikhsan has variety of sports products rather than Royal Sporting
House and in terms on suppliers Al-Ikhsan has more choices of sports brand
compared to Royal Sporting House which only sell the selected brand items.
As a
result, there are competitive strategies that would help to retain
the businesses alive. The strategies are as such, cost leadership, differentiation
strategy, innovation strategy, growth strategy and alliance strategy. For
instance, alliance strategy in other word merging. Google and Motorola merge to
compete with Apple in a telecommunication world. In summary, any business that
would attain competitive advantage it is possible to follow on the five
competitive strategies.
(306 words)
"Deterimination is the wake-up call to the human will"
-Anthony Robbins-
References:
1. Michael
E.Porter and Victor E.Millar, How Information Gives You Competitive Advantage,
Harvard Business Review, July-August, 1985.
2. E.W.T.
Ngai and F.K.T. Wat (2006). Human Resource Information Systems: A Review and
Empirical Analysis. Vol. 35 No.3, pp. 297-314
3. Namchul
Shin (2001). Strategies for Competitive Advantage in Electronic Commerce.
Journal of Electronic Commerce Research, Vol. 2, No. 4, pp. 164-171.
4. Porter,
M. (2001). Strategy and the Internet. Harvard Business Review. Pp. 62-78
