It is highly critical for businesses
and organizations to gain competitive advantage. In most of the times
competitive advantages are only temporary, therefore companies are continually
finding and developing innovative ideas to get ahead of the competition. Most
of these businesses use Michael Porter’s five forces to analyze, identify, and
develop competitive advantages. By using Global Information Systems, businesses
are enabled to use strategies to manage competitive forces. These strategies
are listed below.  1     
Low-cost leadership:
Companies use Global Information Systems to shift the cost of doing business by
achieving lower operational costs and reducing prices.  2     
Product differentiation:
Global Information Systems are used to enable new products, services, and
features; therefore, assisting in reducing competitors’ differentiation
advantages.   3     
Companies use Global Information Systems to identify and produce new products/
services and develop new/niche markets or drastically change business processes
by using automation. Companies can also work on new initiatives on establishing
pure online operations.  4     
Focus on market niche:
Global Information Systems produce and analyze data for sales and marketing
techniques. This data enables the company to focus on each specific market and this
allows the company to serve that specific narrow market better than its competitors.

Growth (Mergers and Acquisitions): Global Information Systems help businesses to expand
domestic and global operations. Additionally, companies are also able to expand
and integrate into other goods and services. Relations with partners are also
enhanced via applications, since companies can create virtual organizations. 

Increase Customer and Supplier Intimacy: Global Information Systems are used to increase the linkage
between your business and your suppliers and between your business and your
customers. A strong relationship to customers and suppliers will increase the
loyalty to your business and the switching costs.

Written by

I'm Colleen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out