Information systems - Essay Example

Strategies Strategies and information systems The Coca Cola Company, which is headquartered in the US, is a multinational entity that deals in soft beverage drinks. By possessing distribution plants across countries in the world, the company is able to market its goods across the world. On the other hand, the Toyota Company, which is headquartered in Japan, is a multinational automobile company that sells different types of vehicles across the world. Both of these companies are global brands that are identifiable in every other country.

There are four strategies of penetrating the world market. In the cost-leadership strategy, a firm ensures that it is the lowest-cost producer. In the case of a price war, a firm can maintain profitability as the competitors suffer losses. The low-cost strategy broadens the profit margin and targets a broad market (Griffin, 2007). The differentiation strategy concerns with offering products that possess different unique attributes. This strategy enables a firm to sell almost the same products to different markets and carry price discrimination across markets (Spulber, 2007).

In the focus strategy, a firm sells and customizes unique marketing techniques to suit different markets. In the low-cost focus strategy, a firm specializes in a given market.It is essential to highlight that Coca Cola mainly uses the differentiation strategy while Toyota employs the low-cost strategy. In this sense, they gear their information systems towards meeting such competitive strategies. Toyota, in the lean manufacturing technique, uses globalized and automated information systems in enabling quick delivery of products across the world.

Coca Cola, on the other hand, uses its information system towards market research. It employs the social media and mobile applications in understanding its market niche. ReferencesGriffin, R. W. (2007). Fundamentals of management: core concepts and applications. Boston, MA: Houghton Mifflin.Spulber, D. (2007). Global competitive strategy. New York, NY: Cambridge University Press.