The paper “ Competitive Advantage through Information Technology” is excellent example of the literature review on information technology. Rosenbluth International (rosenbluth. com) is the world’ s third-largest travel agency company. It offers exclusive vacation, corporate, and travel services. This international travel agency whose headquarters are in Philadelphia operates in more than 30 countries, with over 1000 locations. The travel agency had experienced threats such as increased popularity of online travel agents, commission caps and cuts, as well as the emergence of automated travel management systems. This made many travel companies to either surrender to low profitability or exit the market. This report examines how Rosenbluth responded to such threats to gain a competitive advantage through the use of information systems.
The analysis focus on how Porter’ s competitive forces model shapes the structure of an organization in the industry’ s competitive environment. These competitive forces include rivalry, the threat of new entrants, the threat of substitutes, bargaining powers of the target customers, and finally the bargaining powers of the suppliers (Porter, 2008). The report shows how the information systems, especially the use of the internet, affect these competitive forces.
It is realized that the internet increases competition in the market. A company that would succeed must employ strategies that will enable it to compete favorably where the use of information systems is one of them. Rosenbluth used travel management applications as well a web-based travel management which made it succeed under the stiff competition. Since the competitive forces continuously change over time, it is necessary for Rosenbluth to view the use of information systems as a competitive weapon in which it gains competitive advantage. Therefore, it should use innovative IT applications and the internet to link business partners and changing business process hence reducing the operating costs. Introduction: Organizations within the same market segment constantly compete with one another.
Any organization that needs to succeed must seek for ways which enables it survive this competition, and gain a competitive advantage over the others.
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