Information systems encompass the study of networks of hardware and software that are used by organizations to collect, filter, create ad process data. The information system helps to support operations as well as decision making. Essentially, it focuses on the mode in which persons interact with technology in support of business processes. Organizations make use of information systems in various ways so as to gain the competitive edge. Some of these competitive strategies include low cost leadership, product differentiation and casting the spotlight on the market niche, customer and supplies.This paper shall compare and contrast two companies that employ different strategies and further show how they implement the strategies namely Amazon and Weight Watchers.
Amazon stands out as one of the most successful online business organizations in the world who employ the competitive strategy of focusing on their customer and suppliers. They ensure that they deliver their products mainly books to their respective customers in due time and at a low cost.
Amazon makes use of an information system that closely resembles a Transaction Processing System which enables it to keep track of as well as take stock of its products. Therefore, the company is able to know when to replenish their stock and also how much is in stock at any particular time. When an order is placed by a customer, the information system relays such order to the supply branch thereby directing the supplier who is nearest to the customer. This cuts on costs. Amazon runs the risk of fraud since its customers provide their details on open cyber space which requires them to avail their credit and debit card numbers. However, the organization guards against the security breaches by requiring the use of a password while making purchases.
On the other hand, Weight Watchers make use of product differentiation as a competitive strategy premised on their belief that education on healthy eating habits and lifestyle change advocacy will set them apart from its competitors. Weight Watchers as an organization guards against security breaches by requiring its customers and members to use encrypted password accounts and reserves the right to terminate accounts that the organization feels are suspicious.
In conclusion, both Amazon and Weight Watchers have employed different strategies that have rely on information technologies. They strategies are tailored to suit the needs of its consumers, enhance their security and improve efficiency.
References
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Hemmatfar, M., Salehi, M., & Bayati, M. (2010). Competitive Advantages and Strategic Information Systems. International Journal of Business, 21-26.
Laudon, C., & Laudon, P. (2010). Management Information Systems: Managing the Digital Firm. Upper Saddle River: Upper Saddle River, NJ: Prentice Hall.
