\"Getting to Know the Industry\": Getting to know the industry in which a compan
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Question
"Getting to Know the Industry":
Getting to know the industry in which a company operates is a critical factor for leveraging information systems and gaining a competitive advantage. Speculate as to how information systems can be leveraged in a particular industry. Analyze how time of entry, industry trends, corporate culture, and other factors affect competitive advantage.
Explain your answer. Evaluate the competitive applications of technology. List and describe three applications and how these can be applied to the information systems industry.
Explanation / Answer
The time to enter in Market is a very critical factor in deciding the fate of a product/company.
The timing of market entry is a quantitative, tactical decision as well as a qualitative,
strategic decision . The qualitative decision is typically addressed as an entry strategy
problem: Should a firm try to be a pioneer or a follower? The tradeoff between
the advantages and disadvantages of being the pioneer or the follower is the major issue
for this entry-strategy decision. The quantitative decision is typically addressed as an
entry-time problem: When should a new product enter the market? A potential pioneer
must determine its entry-time so as to balance the opportunities/benefits with an innovation
and the risks/costs associated with product development and marketing. A
potential follower must consider not only the marketing activities of the early entrants
and the evolution of the industry but also the competition of other potential entrants.
The pioneer sees the advantages ofbuilding repzctation and capitalizing
cost dynamics, but also sees the disudvantage of absorbing fhe risks and costs associated
with product and market development.
If a new product pegforms well, the pioneer is more likely to see a
larger market share than the followers who enter the market later.
Followers are most successful when they develop superior products
and support them with strong promotional spending and aggressive pricing.
Early followers that enter the market in the introductory or growth
stages are likely to obtain greater market performance than later entrants
Later entrants require special circumstances (e.g., rapid technological
evolution) and resources (e.g., heavy market~ng mvestments) togazn ajump on competition
against earlier entrants
the timing of market entry is a strategic, qualitative
decision as well as a tactical, quantitative decision. The strategic choice between pioneering
and following is a problem of balancing the advantages and disadvantages of the pioneer
and the follower. The tactical decision of entry time is a problem of balancing the risks
of premature entry and the missed opportunity of late entry. An empirical analysis of a
French data base confirmed several managerial guidelines on entry timing, including ( I )
enter earlier when the expected return is higher, (2) enter later when the market is evolving
more rapidly: the first entrant sees high returns if he is successful, but hears the risk of
lower likelihood of success than later entrants.
Industry Trend analysis helps you understand how industries have performed and predict where current business operations and practices you can adopt/go to. Done well, it will give you ideas about how you might change things to move your business in the right direction.
You can use trend analysis to help improve your business by:
Organizational Culture is considered as Source of Sustained Competitive Advantage
In sustainable, championship cultures, behaviors (the way we do things here) are inextricably linked to relationships, informed by attitudes, built on a rock-solid base of values, and completely appropriate for the environment in which the organization chooses to operate.
It’s the context that makes it so hard to duplicate a championship culture. Because every organization’s environment is different, matching someone else’s behaviors, relationships, attitudes, and values will not produce the same culture.
Three attributes that a firm's culture must have to generate sustained competitive advantages are isolated. Previous findings suggest that the cultures of some firms have these attributes; thus, these cultures are a source of such advantages. The normative implications of the analysis are discussed. Firms that do not have the required cultures cannot engage in activities that will modify their cultures and generate sustained superior financial performance because their modified cultures typically will be neither rare nor imperfectly imitable. Firms that have cultures with the required attributes can obtain sustained superior financial performance from their cultures.
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