This
topic Dr. Roya have teach about to understand how competitive advantage is
created is critical to the development of a firm. Dr. Roya also given
explanation to identify basic competitive strategies and explain how a business
can use information technology (IT) to confront the competitive forces.
Information
technology (IT) plays a major role in reengineering most business processes
firstly it can substantially increase process efficiencies, information
technology also can improves communication. In addition, information technology
also can give facilitates collaboration. Information technology can change the
way businesses compete. When use IT in strategic information system that can
help organization in gain a competitive advantage, reduce a competitive
advantage and it can also meet other strategic enterprise objectives.
In
this topic also can learnt about competitive strategies. Competitive strategies
is on industry structure and competitor analysis in a variety of industry
environments, through it contains many implication for competitive advantage
(Micheal E. Porter, 1985). Five
competitive strategies is explain about cost leadership, differentiation strategy,
innovation strategy, growth strategy and alliance strategy. Firstly about cost
leadership is generating an advantage by producing at a lower cost and the
increase profit margins. Differentiation strategy is about differentiate a firm’s
products from its competitors it also focus on a particular segment.
Before
learnt about competitive strategies it must learnt about competitive force.
Competitive force is a part in competitive advantage. According Wikipedia,
competitive force is group of firm that market their product by offering
consumers greater value with lower price and providing greater benefit and
service to client.
According
Michael Porter's Five Forces Model explains that there are five forces that
determine industry attractiveness and long-run industry profitability. These is
competitive force is first rivalry of competitors
within its industry is more intense where there are many small or equally sized
competitors; and rivalry is less when an industry has a clear market leader.
Second is new entrants into an industry and its markets can give an effect the
level of competition whereby reduce customer dependence on the existing
company. Next is substitute products that may capture market share is a product
from another industry that offers similar benefits to the consumer as the
product produced by the firms within the industry. Next is bargaining power of
customers is about people create demand in organization. Lastly is bargaining
power of suppliers supply material and other product into the organization.
As
a conclusion, competitive advantage also have force and that force can reduce
when we have good strategy. So, I must study a lot about this topic to get more
knowledge that can give me advantage to manage my job in future.