Competitive Advantage - Competitive Strategy

Competitive strategy refers to how a company competes.in a particular business. Overall strategy for diversified firms is referred to as corporate strategy. Competitive strategy is concerned with how a company, can gain a competitive advantage through a distinctive way of competing.

Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

A successful competitive strategy focuses on assessing unique strengths, identifying growth opportunities, collecting competitive intelligence, and responding to competitive threats. It will effectively support company's top-line growth objectives by helping to develop a differentiated and sustainable competitive position.

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E-Procurement Cycle

Figure 2.6 illustrates the different steps associated with the overall procurement cycle, from the order placement to the accounts payable, in steps through a web based e-commerce network. It includes customers' inventory and supplier information and is readily accessible at any time and from everywhere. E-procurement allows two-way communication of real-time financial and purchasing information. Management at both the buying and selling end can see what is happening at any given moment and identify trends and problems. A shorter purchasing cycle enables companies to maintain lower inventory levels and respond more quickly to stock-outs. Previous Next

Business Strategy - Strategic Planning Cycle

E-business competitive strategy is normally formed and implemented according to a planning cycle which is called strategic planning cycle . There are four stages in this planning cycle as shown in figure 1.19: Industry and Competitive Analysis It aims to identifying those factors on which the success of an electronic commerce project or business would depend. One way of doing that is to carry out SWOT analysis and study your business as well as the business of competitors. Analysis of online competitor businesses is relatively easy since they are just a few clicks away on the web. Strategy Formulation Based upen study of internal and external business environment and in light of a company's strengths and weaknesses, a competitive business strategy is formed. It may be a strategy of cost leadership, product differentiation or focus. One can also identify ways how information technology can be used to implement/enforce such strategy. The inputs to the strategy formulation process ar...

Disadvantages of EDI

1), Operating Procedures : Since EDI is a structured way of working, companies usually change operating procedures. 2) Production and Purchasing Decisions : Responsibilities may have to be changed during the introduction of EDI system. Unless this system and the links with other systems are managed well, it is not possible for the data processing department to become involved in production and purchasing decisions. 3) Transparent : Less transparent than paper-based systems. 4) Flexibility : Certain EDI systems are highly flexible, others are very simple to implement. 5) High Costs : Applications are costing to develop and operate; especially new entrants find this more difficult to have EDI. Many small companies are facing resources problems in getting starter with the initial implementation of EDI system. It is beyond the resources these companies to invest tens or hundreds of thousands of dollars in setting and implementation costs, as well as weeks of personne...

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