Wallace (2015), in their book Introduction to information systems, Information systems potentially play their most valuable roles when they are integrated closely with strategy and tied to the major initiatives that will help achieve strategic objectives.
Competitive advantage, which is anything that gives a firm a lead over its rivals, can be gained through the development and application of innovative information systems. Increasingly, these systems are a core feature of a company’s strategic vision. Indeed, that vision must be shaped to some extent by what information systems can achieve today and what is possible for the future.
Michael Porter (1979) identified three basic strategies that are most likely to lead to success:
1. Low cost leadership strategy
This means offering a similar product at a lower price compared to competitors. To be successful, the company has to cut every gram of fat in the value chain using information systems to automate and streamline processes.
A relentless search for ways to reduce operating expenses and achieve efficiencies pervades this strategy. For example, the research revealed that the existing online shoppers in Kathmandu are price sensitive (Malla, 2018). Daraz’s enormous success as a low cost leader in retailing comes especially from its IT-supported supply chain. They believe on excellent value-for-money, large assortment of original products, fast delivery and easy returns are Daraz signatures. This is also possible because the ecommerce are free from the burden of expensive rent, and unused of employee for sales person.
2. Product differentiation strategy
This involves adding special features or unique add-ons for which customers are willing to pay more. This strategy tends to reduce threats from substitute products and erects barriers to new entrants.
For instance; if we HR industry in Nepal then merojob.com has its first mover advantage. Since their inception in 2009, they have turned out to be number one jobs provider in Nepal with 100 million+ page views with 2.5 million+ progressive visits every month, created 150,000+ success stories and registered 350,000+ job seekers in their database. They have been offering 20,000+ employers promote their employer brands to jobseekers and advertise diverse opportunities to over a million candidates inside Nepal and abroad.
Generally, employer used to post their vacancy for the newspaper ads before 2009. But, this has gradually decreased to their add on paper due to their presence or say active presence on web, mobile apps and social media has added value to both employee and employer (Merojob, n.d).
3. Focused strategy
Differentiating the product or service for a particular market niche is called a focused strategy.
For instance, Sherpa Adventure Gear, in 2003 by Tashi Sherpa, weaving together the latest patterns and technology with the rich heritage and time honoured beliefs of Nepal. From the highest heights of the Himalayas, they promise on saying that they lead the world of mountaineering with warmth, good will and honest temper (Schaffer, 2013).
Here, they explain their existence for the mountaineering, trekking, travelling and exploring the world. They also weave into every garment a rich heritage of time honoured beliefs and humility. The niche market is profitable for them rather they planned for all demography.
References
Malla, S. (2018). Online Shopping Behavior among young consumers in Kathmandu, Nepal.
Wallace (2015), in their book Introduction to information systems, Information systems potentially play their most valuable roles when they are integrated closely with strategy and tied to the major initiatives that will help achieve strategic objectives.
Competitive advantage, which is anything that gives a firm a lead over its rivals, can be gained through the development and application of innovative information systems. Increasingly, these systems are a core feature of a company’s strategic vision. Indeed, that vision must be shaped to some extent by what information systems can achieve today and what is possible for the future.
Michael Porter (1979) identified three basic strategies that are most likely to lead to success:
1. Low cost leadership strategy
This means offering a similar product at a lower price compared to competitors. To be successful, the company has to cut every gram of fat in the value chain using information systems to automate and streamline processes.
A relentless search for ways to reduce operating expenses and achieve efficiencies pervades this strategy. For example, the research revealed that the existing online shoppers in Kathmandu are price sensitive (Malla, 2018). Daraz’s enormous success as a low cost leader in retailing comes especially from its IT-supported supply chain. They believe on excellent value-for-money, large assortment of original products, fast delivery and easy returns are Daraz signatures. This is also possible because the ecommerce are free from the burden of expensive rent, and unused of employee for sales person.
2. Product differentiation strategy
This involves adding special features or unique add-ons for which customers are willing to pay more. This strategy tends to reduce threats from substitute products and erects barriers to new entrants.
For instance; if we HR industry in Nepal then merojob.com has its first mover advantage. Since their inception in 2009, they have turned out to be number one jobs provider in Nepal with 100 million+ page views with 2.5 million+ progressive visits every month, created 150,000+ success stories and registered 350,000+ job seekers in their database. They have been offering 20,000+ employers promote their employer brands to jobseekers and advertise diverse opportunities to over a million candidates inside Nepal and abroad.
Generally, employer used to post their vacancy for the newspaper ads before 2009. But, this has gradually decreased to their add on paper due to their presence or say active presence on web, mobile apps and social media has added value to both employee and employer (Merojob, n.d).
3. Focused strategy
Differentiating the product or service for a particular market niche is called a focused strategy.
For instance, Sherpa Adventure Gear, in 2003 by Tashi Sherpa, weaving together the latest patterns and technology with the rich heritage and time honoured beliefs of Nepal. From the highest heights of the Himalayas, they promise on saying that they lead the world of mountaineering with warmth, good will and honest temper (Schaffer, 2013).
Here, they explain their existence for the mountaineering, trekking, travelling and exploring the world. They also weave into every garment a rich heritage of time honoured beliefs and humility. The niche market is profitable for them rather they planned for all demography.
References
Malla, S. (2018). Online Shopping Behavior among young consumers in Kathmandu, Nepal.
Merojob. (n.d.). About us. Retrieved from merojob.com/about-us/
Porter, M. E. (1979). How competitive forces shape strategy. Strategic Planning: Readings, 102-117.
Schaffer, G. (2013). The disposable man: A western history of Sherpas on Everest. Outside Magazine.