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Strategic Uses of Business to gain competitive advantage - Coggle Diagram
Strategic Uses of Business to gain competitive advantage
Strategic Planning for
Competitive Advantage
Innovation
Uses IS to conduct the business in a new way and involves developing unique products and services than their competitors or entering unique markets or market niches.
Growth
Use IS to make real or perceived improvements to existing product lines and services to increase profits in the long run due
to increased sales.
Differensiation
Use IS to enable new or different products and services or greatly change the customer convenience in using the existing products and services.
Alliance
Establishing new business linkages and strategic partnership with....
customers
suppliers
Competitants
Consultant
Other companies
Cost Leadership
Use IS to achieve the lowest operational costs and the lowest prices.
Competitive Advantage
In almost every industry, some firms do better than others to gain competitive advantage.
Online retail: Amazon is the leader.
Automobile: Toyota is a superior performer.
Online music: Apple’s iTunes is the leader with more than 60 percent of the downloaded music market.
Web search: Google is the leader.
Off-line retail: Walmart is the largest retailer on earth.
A significant and long-term benefit to a company over its competition.
Porter’s Five Forces Model
Threat of substitute products and services
New technologies create new substitutes all the time
Bargaining power of buyers
A profitable company depends in large measure on its ability to attract
and retain customers and charge high prices
Threat of new entrants
when entry and exit costs to an industry are low and the technology needed to start and maintain a business is commonly available
Bargaining power of suppliers
The market power of suppliers can have a significant impact on firm profits, especially when the firm cannot raise prices as fast as can suppliers
Rivalry among existing competitors
All firms share market space with several competitors
Basic Strategies In The Business Use Of Information Technology
Innovate
Promote Growth
Differentiate
Develop Alliances
Lower Costs