It is highly critical for businessesand organizations to gain competitive advantage.
In most of the timescompetitive advantages are only temporary, therefore companies are continuallyfinding and developing innovative ideas to get ahead of the competition. Mostof these businesses use Michael Porter’s five forces to analyze, identify, anddevelop competitive advantages. By using Global Information Systems, businessesare enabled to use strategies to manage competitive forces. These strategiesare listed below. 1 Low-cost leadership:Companies use Global Information Systems to shift the cost of doing business byachieving lower operational costs and reducing prices.
2 Product differentiation:Global Information Systems are used to enable new products, services, andfeatures; therefore, assisting in reducing competitors’ differentiationadvantages. 3 Innovation:Companies use Global Information Systems to identify and produce new products/services and develop new/niche markets or drastically change business processesby using automation. Companies can also work on new initiatives on establishingpure online operations. 4 Focus on market niche:Global Information Systems produce and analyze data for sales and marketingtechniques. This data enables the company to focus on each specific market and thisallows the company to serve that specific narrow market better than its competitors. 5 Growth (Mergers and Acquisitions): Global Information Systems help businesses to expanddomestic and global operations. Additionally, companies are also able to expandand integrate into other goods and services.
Relations with partners are alsoenhanced via applications, since companies can create virtual organizations. 6 Increase Customer and Supplier Intimacy: Global Information Systems are used to increase the linkagebetween your business and your suppliers and between your business and yourcustomers. A strong relationship to customers and suppliers will increase theloyalty to your business and the switching costs.