Thursday, October 13, 2011


After study and get good explanation from my lecturer about the changes in HRM merge with IT the next topic that I would like to share there is “Is for Competitive Advantages”. What it mean about information system competitive advantages? Those this related with HRIS? Are this are not have disadvantages? With this question I would like to share it more.

Role of ITS

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Information system competitive advantage means we use the information technology system to gain the profit and opportunities in drive the company aligned with worldwide demanding. Information technology have it own role like IT can help to perform the task faster with minimum time, improve communication with workers, competitor and supplies. It also can facilitate collaboration like emergence with supplies (joint venture).

Basically, there are five competitive strategies that a company need and have used it. There are cost leadership, differentiation strategy, innovation strategies, growth strategy and alliance strategies. I’ll will discuss it and share some information about it.

Cost leadership strategy

With this strategy, the objective is to become the lowest-cost producer in the industry. Many market segments in the industry are supplied with the emphasis placed minimizing costs. If the achieved selling price can at least near the average for the market, then the lowest-cost producer in theory enjoy the best profits. This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers. A low-cost leader will also discount its product to maximize sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share.

For example the like TESCO HYPERMARKET. They give the lower price from other to attract the buyer to shopping with them compare to other hypermarket.

Differentiation strategy

This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products.

We can see the BANKING SYSTEM like Islamic and conventional. They use different strategy to attract customer to save and make deal with them. Islamic system likely to use give lowers interest to their customer but in other side like conventional banking system they are offering like went save it with them we can get more profit rather than Islamic banking.

Innovation strategy

What I can say about these strategies is they likely to use unique products, services or markets. This products or services they tend to likely change to make a new innovation to their product or services

From my view, we can see L’OREAL PARIS product. Their product rapidly changes because they intend to make innovation to their product.

Growth strategies

Growth means expand. With this perception we know that growth strategies is like being expand and have many kind of product and services with one company. Growth also can be said like expand our company into global market.

Wal-Mart’s is a hypermarket that uses the online system to make and have ordering the product. With this kind of situation the Wal-Mart Hypermarket are being into global market because they use online system to sale their product.

Alliance strategy

It establishes the connection with customers, supplies, competitor, consultant and other company. It also include emerge with other company.

We can take Wal-Mart’s as example, they use the replacement system of inventories like they use the satellite to get know how many they need to be added their stock on current month. Then all the data are sent to their supplies to take action.

In conclusion, these five competitive strategies can drive the HR function with help of technology system. With this also, company can decrease the time consuming and budget of years.

No comments: