Reflection on Information System on Competitive Advantage

Before this, I really do not understand what is the competitive advantages in industries but after I have learnt that topic that from Dr Roya I am able to understand more about this topic. From what I have learnt in the class, competitive advantage is what distinguishes you from the competition in the minds of your customers. Whether you are an employee, a business or a country, you need to have a clear competitive advantage and communicate it to your customers

            Besides that, I also learnt about the competitive forces. In order to succeed, a business must develop strategies to counter the forces. Investorwords define the competitive force as a forces that shape industries and economic sector, which can be used to determine the competitive strength or weakness of a company. There are five competitive forces which is the rivalry of competitors within its industry, the new entrants into an industry and its markets, the substitute products that may capture market share, the bargaining power of customers and lastly the bargaining power of suppliers (as shown in the below figure).  The more competitive forces are being faced by an organization, the higher competitive pressure it feels.

           

Other than that, I also have been taught about the using competitive strategies. These strategies are not mutually exclusive. There are five strategies which is cost leadership, differentiation strategies, growth strategies, alliance strategies and innovation strategies. A given activity could fall into one or more categories of competitive strategy. For the cost leadership strategy a firm achieves cost leadership in its industry by thrifty buying practices, efficient business processes, forcing up the prices paid by competitors, and helping customers or suppliers reduce their costs. The next is innovation strategy which means that company need to produce new product or services that different and unique from other company. This is because innovation implies something so new and different that it changes the nature of the industry. The third is Differentiation strategy. Come up with new ideas which promoted the different products, services or product features and can charge higher prices and sell more products. The fourth is alliance strategy. Work with business partners in partnerships, alliances, joint ventures, or virtual companies. And the last but not least is the growth strategy. The growth strategy means the companies need to expand company’s capacity to produce diversity new product and services. At the end of the class I am satisfied with the information that has been given to me by Dr Roya.

           

references:

http://en.wikipedia.org/wiki/Competitive_advantage

http://useconomy.about.com/od/glossary/g/Competitive-Advantage.htm

http://www.emeraldinsight.com/journals.htm?articleid=865105&show=html

http://www.investorwords.com/16262/competitive_forces.html


(415 words)