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(9) Competitive strategies Small town Computer can exert.

(i) low cost leadership : use information to product products and services at a lower price than competitors while enhancing quality and level of service (ii) product differentiation : use information systems to differentiate products and enable use information systems to differentiate products and enable new service and products (iii) focus on market niche use information systems to enable a focused strategy on a single market niche ; specialize (iv) customer and supplier intimacy use information systems to develop strong ties and loyalty with customers and suppliers

Strategies that will have difficulty exercising (i) product differentiation : the ability to create a viable business growth strategy through differentiation the ability to create a viable business growth strategy through differentiation is limited by the product itself. The disadvantage of this repositioning of your product to a more distinct and uncluttered position in your customers' mind, is that it usually requires larger advertising and production the costly, uncertain, and difficult outcome of innovation efforts. expenditures. potential consumers can have a biased perception of the features of the good (say because of advertising or social pressure ) (ii) focus on market niche A niche market may be thought of as a narrowly defined group of potential customers. the key to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible , that is growing fast enough and it is not owned by one established vendor already, giving a small but regular income stream

(10) Strategies the might Better Bodies use in applying information services to achieve a competitive advantage Competitive advantage a situation in which one firm's value chain produces products and services that are superior to those of other firms of cost features or other characteristics

Strategies & information services (i) synergies idea is that when the output of some units can be used as inputs to other units, or two organizations pool markets and expertise these relationships lower costs and generate profits. One use of information technology in these synergy situations is to tie together the operations of disparate business units so that they can act as a whole. The role of information systems is lowering costs and co-coordinating operations (ii) core competencies an activity for which a firm is a world class leader. Relies on knowledge that is gained over many years of experience and a first class research organization or simply key personnel who follow the literature and stay abreast of new external knowledge. Is enhanced by encouraging sharing of knowledge across business units. Help the business leverage existing competencies to related markets (iii) network based is the availability of internet and networking technologies. It include the use of : economics - model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gains virtual company model - organizations using networks to link people , assets and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical location business ecosystems - loosely coupled but interdependent networks of suppliers , distributors , outsourcing firms , transportation service firms and technology manufacturers