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Q. Competitive strategies for Information system?
Business is capable to develop competitive strategies to counter the action of the competitive forces they confront the market place.
1 Cost leadership strategy- developing into a low cost producer of product and services in the industry. As well a firm can find way to help its supplies or customers reduce their cost or to increase the costs of their competitors.
2. Differentiation strategy -Developing manner to differentiate the firm's product and services from its competitors or reduce the differentiation advantages of competitors. This is very vital strategies for success of the business.
3. Innovation strategy - Finding new manner of doing business. This may engage the development of unique products and services or entry in to unique market. It may as well involve making radical changes to the business processes for producing or distributing products and services.
4. Growth strategy- Considerably rising a company's capacity to produce goods & services expanding into global markets diversifying into new product also services or integration into related products and services.
5. Alliance strategy- Establishing fresh business linkages & alliances with competitors, customers, consultants, suppliers and other companies. These linkages may possibly include acquisitions, joint ventures, mergers etc.
a. It results in dislocation of production process and causes excessive delays or reduction in output. b. Wages are to be paid for idle time resulting in loss of profits.
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