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Chan Tung,Tavita Tauati


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Competitive Strategy and Informative Systems.

What is Competitive Strategy?
Competitive Strategy are specific plans for how a firm will compete after evaluating how its strengths and weaknesses compare to its current and future competitors. For example, a Steel firm may decide to concentrate on a special niche product offered in limited areas after determining it cannot compete on price with major competitors.

Now we find what is Competitive Strategy but for us to know more in depth lets watch this video from Professor Michael E. Porter from Harvard University School of Business.

Learn more about Competitive Strategy

Using the information we know about Competitive Strategy is about, now lets use it and apply it to a real life situation. We choose Walmart as our example since it is one of the successful Competitive Strategic Business currently in the U.S Market and around the world.Now lets figure out a way that we can be able to counter Walmarts' domination in the retaling markets.

According to "freepatentsonline.com"  Competitive strategy and the Wal-Mart threat: positioning for survival and success.

These are the three ways a retail business can be able to counter the threat of Walmart using Competitive Strategy.

Strategy 1: Focus on Low Cost
Focusing in Low Cost merchandize is a must if you are going to enter into the retailing industry especially its very competitive with a lot of competition. You might not have the barging power that bigger Businesses like Walmart, Walgreen's,etc have but you can join Trade associations which is an organization that all small business come together as one and order the same product so they can get the economy of scale that bigger retailers have with their suppliers. With low cost in hand, you could now resell your products in a lower price and be able to be Competitive in the Low Cost war between small and larger retailers.

Strategy 2: Focus on Differentiation
Many people think that all customers prefer cheaper products than expensive ones disregarding what are the other important things that other customers are really looking for. They are looking for the quality,convenience,location,service favorable terms,etc. This means that there are some customers out there who are willing to buy a little bit more above the just to get a better product than a cheaper one. We all know that the cheaper the product the more the that certain product sacrifices the quality. Therefore, customers are looking for products that could last them long term rather than short term. Other important factors needed to be addressed in differentiation is to able to provide different varieties for similar products you have in your retail store to be able to compete with giant Retailers. Big retailers tend to order huge quantities of the same product just to get the economy of scale but lacking the differentiation in their products. Well this will benefit you if you are a small retail business because you can be able to order different varieties using the Trade associations between small retailers.

Strategy 3: Value Orientation
 Value Orientation is almost like a hybrid of Low Cost and Differentiation but the difference is that the commitment to quality and services. Value Orientation does not seek  that middle position between Low Cost and Differentiation instead it c
onsciously seek cost and price positions that may be nominally higher than those products currently being sold at Big retailers. You may start to wonder how can be this be a competitive advantage. Well the competitive advantage comes from through high quality service. "This perception of high quality by the customer is driven by an ability to act decisively, control retail programs related to price, and overwhelm customers with service, particularly the handling of complaints. They reported that these drugstores were successful through the implementation of three competency-based constructs and only one performance-based construct." from Parnell, John A.Lester, Donald L.

This is a example of why Competitive Strategy is very important in business because it really helps you find a way to compete against your competitors and find ways your business can be very sustainable.

What is Information Systems?

According to "Text USING MIS by Kroenke" Information systems is a group of components that interacts to produce information. And those Components that interact producing information are Hardware,Software, Data,Procedures, and People.

Now you know what information systems, lets learn more and find out more in depth about this interesting thing call Information Systems from Professor Michael Bieber from the New Jersey Institute of Technology.

What is information Systems?

BBC News

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The image below shows the relationships that Information Systems,Computer Science and Business Management. This information system help revolutionize the way business connects with its operations and management in the business. Using this kinda of form of technology helps business save a lot of money and also made life easier for all management in all businesses.
Source Wikipedia.org

"More Information systems currently out there"

Executive Support Systems: This is designed to help senior managers to help analyzes internal and external information used by the business. These software helps you to turn your business/organization data into summarized reports. And all the external and internal departments are billing, cost accounting, staffing, scheduling, and more.

 For example: Apple is a big company and its top management team needs to know internal and external information about how the company is operating. To figure this out is to install and utilize the Executive Support Systems in their business. Applying Executive Support Systems allows top management to either modify, change,increase,decrease and monitor the supplies/funding the movement of inventory and services within and out of the company.

Management Information Systems(MIS): This is designed to provide information necessary to manage an organization effectively to be able to provide components of prudent and reasonable decisions. This is only to be viewed and used by all the different management levels. Goals that MIS is to improve communication between employees, transport complex materials throughout the institution, and provide an objective system for recording information.

For example: This system is used throughout all business industries from Agriculture to Television . They need MIS to be able to provide more effective and successful ways of managing. Managing is difficult but MIS helps simplify the workload especially in this more Globalized based economy.


Decision Support Systems(DIS): This is designed to help support support business /organizational decisions activities. This program will be able to serve management, operations and planning levels of businesses/ organizations. The software simply use information from different combination of raw data, documents, personal knowledge and many more to solve and help assist in decision making.Most common information being gathered are inventory information for assets, comparing past and present data, and use estimates revenue based product sales assumptions.
The picture above is an example of Decision Support Systems.Source Wikipedia.org

For example: DIS is a system which helps a lot of business with forecasting to try to reduce inventory and waste in their warehouse. The use of this system is to provide a close estimate of the more precise estimate of what they should produce/order in a certain time period. 

Knowledge Management Systems(KMS): According to Wikipedia "Knowledge Management System (KM System) refers to a (generally generated via or through to an IT based program/department or section) system for managing knowledge in organizations for supporting creation, capture, storage and dissemination of information. It can comprise a part (neither necessary nor sufficient) of a Knowledge Management initiative".

Picture Source: Wikipedia.org

Transaction Processing Systems(TPS): This automatically holds database from business activities. And banks are great example of a business industry who is using this system very effectively nationwide. 

YouTube Video

Sixty Minutes News

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For example: Almost all Banks use this TPS system because it helps them serve their customers 24/7 in selected locations they have their ATM machines. This helps bank provide more effective services for their customers also reduce labor cost since they don't require to have a teller/banker there to help the customer to withdrawal money.

Office Automation Systems(OAS): "Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system. Office automation helps in optimizing or automating existing office procedures." by Wikipedia.org

National Geographic