Chapter 2: Information System for Competitive Advantages

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This week review, we had learnt about basic competitive strategies which relates with information system. Information plays very significant roles in industry nowadays. Most of the company nowadays applied several strategies that is very competent which can bring to their organization roles. According to Hemmatfar, Salehi & Bayat (2010), they had listed out eleven competitive strategies but in class, we only focused on five topics. There are Cost Leadership, Differentiation Strategy, Innovation Strategy, Growth Strategy and Alliance Strategy. When we look at these strategies, most of it likely related with how they want to become very competitive in order to promote and branding their organization.

Cost Leadership is the way how the organization lowering their costs and at the same time they can maintain the quality of their products or services by using several methods for instance, online business to consumer (Xu & Quaddus, 2010). We can see that when an organization able to lower their costs, immediately they are also helping the people around them to reduce their costs too for example, the supplier and customer.

Differentiation Strategy is the way how the firm’s differentiate their products from other company so that they can dominate and control the industry (Hemmatfar, Salehi & Bayat, 2010). As we know, when our products are different and unique from other competitors, people are more attracted and we can simply dominate the industry.

Innovation Strategy is the changes on the organization’s products or services which likely to renovate, or making it better. This innovation strategy might also change the business processes and practises (Xu & Quaddus, 2010). Some of the organization might decide to make an innovation most probably due to the changes in current needs, modernization and advances of technology.

According to Hemmatfar, Salehi & Bayat (2010), they had mentioned that this Growth Strategy requires the organization to develop and create a lot of new products, increase the capacity on the amount of products in the market to meets the demand and also expand their organization to the global industry or field.

Alliance Strategy is strengthening and creates a relationship with customers, partnership, suppliers and also people around the organization (Xu & Quaddus, 2010). This alliances needs the use of information system to get any related network or knowledge.

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References

Hemmatfar, M., Salehi, M., & Bayat, M. (2010). Competitive Advantages and Strategic Information Systems. International Journal of Business and Management, 5

Xu, J. & Quaddus, M. (2013). Information Systems for Competitive Advantages. Atlantis Press