The paper “ Competitive Advantages of Using Information Technology” is a perfect variant of the case study on management. The ability of an organization to gain or enhance competitive advantage is very significant for organizations. In order for any organization to stay ahead of the competition, it should continually seek to enhance competitive advantage. The role of IS/IT in creating competitive advantage includes reduction of cost of operation, reduction of competitor’ s differentiation advantages, enhancing innovation to name a few. In this report, successful and unsuccessful examples of the use of information technology for competitive advantages will be discussed together with factors influencing the success or failure of attempts to enhance competitive advantages.
The paper will also discuss how organizations can sustain a competitive advantage. Competitive advantages of using IS/ITIntroductionGaining competitive advantage is considered important for every organization. Competitive advantage according to Alexy and Reitzig is a product, service, or capabilities that a company’ s customers value very highly as compared to the same offerings from the competitors’ (Alexy and Reitzig, 2012). Competitive advantages are normally temporarily since competitors are often looking for ways to facsimile the competitive advantage.
For any organization to stay ahead of the competitors, it should continually seek to develop and create any competitive advantages. To survive and avoid failure, an organization should develop and implement effective strategies in order to counter the available competitive forces (Alexy and Reitzig). Meanwhile, information systems or information technology can be a driving force of such strategies. For instance, business organizations can utilize IS/IT to effectively shift the cost of operations and processes, to develop and create differentiated features or reduce the competitors’ differentiation advantages and to identify and develop new products and services and change business processes through automation (Booth, Roberts, and Sikes, 2011).
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