Competitive Advantage In Global Business

Published Date: 02 Nov 2017

Nowadays, information technology is something that very useful to all people in the world. This is because the world is changing dramatically with so many improvements in technology. Then we can said that Information technology is one of the competitive advantage for any organization to be a success in global business. This is because information technology is giving so many advantages to the organization to complete and to compete with their competitor.

"In 1992 the IT and communications sector had grown to close to 10 percent of the gross domestic product in the United States. The computer equipment and services sector alone was larger than auto, steel and mining, petrochemical and natural gas combined." (Don Tapscott, 5). From the sentence we know that IT has grown very fast in this global business. The uses of IT in the business world are really important for any organization. With market and their players constantly changing, the possibility of enterprises establishing a sustainable competitive advantage no longer exists. No organization can afford to rest on its laurels, each must constantly innovate to compete.

"Competitive advantage is actually is the advantage that one business has over another business organization due to more effective and efficient use of information systems and ICT to deal with competitive forces".(Addison Wesley, 18 ). Competitive advantages are the weapon for any organization to become a known success organization. They must have their own competitive advantages in order to compete with the other organization. Nowadays IT is one of the competitive advantages that many organization used to compete in the global business

Objectives

This research is about information technology as a competitive advantages in global business. There are a few objectives why this research has been made. The objective is:

To defines information technology as competitive advantage in global business.

To develops information technology as competitive advantage in global business.

To discuss the about information technology with the global business

To make conclusion about information technology related with global business

IT as a competitive advantages to global business

In this era, information system and ICT can be used to implement the organization strategies to achieve competitive advantage. A significant challenge in business information systems is the need to attain competitive advantages both nationally and internationally. The concepts of competitive advantages is one that has become synonymous with Professor Michael Porter of Harvard University, USA which defines competitive advantages is the ability of a business organization to compete with other organization.

IT has become a competitive advantage nowadays because it helps organization to achieve their goals and objective. Beside that, IT also can help organization to build a relationship or build link with the world and anyone that want to involve with the organization. "ICT can be used to link customers and suppliers to a business organization systems. In doing so, an organization can develop customer loyalty and make it too costly, or inconvenient, for customers (and suppliers) to switch allegiance to a competitor organization." (Addison Wesley,19). From the sentence we know why IT has become a competitive advantages to global business. It is just not make an organization easy to reach customer or supplier, it also can reduce the cost that need in order to finish the job.

In this era, we can see that all type of business are using the IT in their business because the global are involving with the presence of IT. In order to compete, they need to use IT to make sure they are level with their competitor. IT also can be used by a small business organization. We can see many examples that small business uses IT medium such as Facebook, Youtube and Google to market or to implement their marketing strategies.

Discussion

IT as a competitive advantage in global business. Nowadays, if any organization want to compete in the global business, they need to have a knowledge about IT. This is because IT has become one factor that all organization must have. With the world has change dramatically, the improvement in the IT has become more larger than we know. For me, this statement is true because it is hard for a business to operate without the use of IT. There are many aspects that we can look to support this statement.

We can look in a global business such as airlines services, banking, and many others, there are using the IT to operate their business. This is because it is easy for them to run the business globally. Let’s look from the simple aspect, by using IT, we can simply reach customer globally without going to that place. We just need to use any available medium to reach people. By using this way, organization can reduce the cost or eliminate the cost to send people or worker to reach the customer in all over the world.

IT will help organization to establish them properly and fast. Nowadays, many organization will use any available information system to keep their information. Any information about them will be store in the system. Then it can reduce the uses of paper. Beside that, by using the system, it become more easier for them to find a previous document that they need. As we can see, Customer Relationship Management (CRM) nowadays has become very popular. It help organization to keep the detail about their past customer and present customer.

IT can be used to implement any organization strategies. As example marketing information system is really useful and easy for an organization to implement their marketing strategies. The information can be used to target customer and suppliers to identify market niches for products and services. IT also can make organization product or service more attractive and productive.

Conclusion

As we can see, IT is very important in global business because it give many benefit to a business organization whether it is nationally or internationally. There are so many importance of technology nowadays. It can be use in global business. Advance in technology shape the products and services of the future and offer opportunity for innovative organization to increase their value to the stream of economic activity.

Information technology is particularly important because it is pervasive in the process leading to advances in the most other activities. All activities create, transport, disseminate, or use information. Advances in IT have a compounding effect on technological advances everywhere. Accordingly, information technology is exerting a remarkable and profound effect on worldwide competition.

Advancing technology is important because it alters industry structure, shapes and molds competitive forces within and between companies and industries, and thereby changes forever the behaviour patterns of billions of individuals. Technology for its own sake is not important. What is important is its dramatic impact on society as a whole.

As a conclusion, we can conclude that IT as a competitive advantage in global business because it help business to cooperate and to growth a business rapidly fast. Without the help of IT in global business, it is hard for any organization to operate very well. In order to maintain their company, they must fully utilized the available function of IT.