Hi, I need help with essay on Information system in Management. Paper must be at least 750 words. Please, no plagiarized work!
It is therefore clear that by identifying strength position, business can take fair advantage, eliminate wrong situations and eventually creating sustainable advantage.
Supplier power is one of the important forces which help business to determine ease of driving up prices by the suppliers. Business may counterbalance this force by standardizing specifications in parts for it to change among suppliers easily. Business may decide to add more vendors or even change technology to eliminate coming together of strong suppliers. By standardizing specifications, adding more vendors and changing technologies, it would be easy to weaken supplier power hence creating sustainable advantage (Porter, 2008).
Additionally, there is buyer power which includes the number of buyers as well as their importance to the business. Business would have sustainable advantage if the number of buyers who can control the business and lower down pressure. Business should therefore attempt to disperse their buyers and ensure that not a few buyers can control it by dictating transactional terms.
Moreover, business may have tremendous strength if there are few competitors in the industry. Competitive rivalry is a very crucial force that every organization must take serious note of. For sustainable advantage, a firm may decide to differentiate her products and add value as a way of staying ahead of their competitors. This will also reduce the threat of substitution through supplying of unique products that cannot be easily substituted hence boosting a business power. Furthermore, threat of new entry is very important because the easier it is to enter the market due to minimal cost and time, the bigger the threat. An organization should try as much as possible to guard her key technologies and increase economic of scales which strengthens durable barriers hence providing favorable position (Porter, 2008).
It is important for every business to create value since it is out of the value created