Management Information System

UNDERSTANDING MIS

MGMT305-1102B-08

In today’s business industries, information system is vital in a company due to the fact that it helps in the achievement of competitive advantage on top of the other competitors. Thus, the information system usage is very common in the companies due to the advantages it comes with. However, the following will give an explanation on the four competitive strategies in businesses (Laudon & Laudon).

Meanwhile, the first strategy would be the cost leadership strategy which considers the type of strategy that producers’ usually use whenever they are targeting the mass market with facilities that has efficient scale. Also, it involves cost reduction, high level of cost and control that are overhead. In addition, the cost reduction in R&D, services, advertisement and sales force in the organization are also including (Laudon & Laudon).

Another strategy would be the product differentiation. Therefore, the key point of this strategy would be the situation in which they target the mass market. Thus, they usually do it a way in which they create products and services that are unique throughout the industry. With that said, with all the help that comes with this strategy, then the business may able to charge premium charges at the same time for all the products it has in the market (Laudon & Laudon).

Furthermore, focus on a market niche would be the third strategy which focuses primarily on a specific market segment. However, in a situation like this, companies serve only in a specific geographic region of the country. Meanwhile, the fourth competitive strategy would be the customer and supplier intimacy. Thus, when it comes to this strategy, it is use to strengthen the relationship with suppliers and also use to gain access directly by the suppliers to production schedules. Therefore, they could at least decide on how and when they should ship supplies to the right destinations (Laudon & Laudon).

In addition, TJX Companies...