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Discussion Board - Research Paper Example

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With the ever-growing changes in the world of Information Systems (IS), the term knowledge has grown out of the contemporary meaning to stand for something that can be manipulated by information systems or as a consequence of using them (Carvalho & Ramos, 2006). This has…
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Discussion Board (DB) - - - - Discussion Board (DB) With the ever-growing changes in the world of Information Systems (IS), the term knowledge has grown out of the contemporary meaning to stand for something that can be manipulated by information systems or as a consequence of using them (Carvalho & Ramos, 2006). This has confused our understanding of information system and has lead to viewing it from an altogether different kaleidoscope. With the excessive use of information systems, organizations have switched to a range of competitive strategies that include namely Low Cost Producer Strategy, Differentiation Strategy, Niche or Focus Strategy and Customer/Supplier Strategy.
These strategies use either producing products with the lowest possible costs; dividing the products into categories that appeal to customers; or focusing on niche or narrow consumer choices.
Southwest Airlines is one such organization that has focused on the Low Cost Producer Strategy (bags fly free!) in order to compete in the market. Southwest Airlines offers lower cost services to customers and is a low-cost-carrier. Southwest has almost never served a meal to passengers onboard and has cut on many of the other services that most airlines provide. Since the economic turmoil, as airlines started firing employees, Southwest Airlines fired none and rather cut on the salaries of its employees. This increased the employee loyalty towards the company and strengthened the customer base. This flexible nature has enabled Southwest Airlines to purchase the highest number of 737-700s (Bundgaard, Bejjani & Helmer, 2006)
The use of information technology has never the less created the risks of security breaches. Online reservation requires passengers to provide credit/debit card details, that customer are hesitant to provide. However, Southwest has made sure that no fraud ever occurs and all reservations are secured.
Apple Inc., a renowned American organization specializing in computers, believes in innovation and thus makes use of Differentiation Strategy as its competitive strategy. Apple has pioneered several inventions and come up with PDA’s, iMac, iBook, iTunes, iPod, iPad etc. taking the market by storm. Apple has continued to provide customers innovation when it comes to gadgets and has created some of the finest electronic products. The differentiation strategy creates monopoly and reduces the chances of substitutes taking over. Apple Inc. has hired this policy and thus is able to pass on the costs to customers, without losing customer loyalty. This strategy is viable since Apple has rare competitors who cannot replicate Apple’s market strategy and exploit their sales.
Despite strict regulations, Apple has come under numerous security breaches where its data was hacked and exposed. One of the worst security breaches surfaced when a group of hackers exposed several thousand owners of iPad, making them vulnerable to spam marketing and hacking. Later it turned out that the information had been stolen from a file that the firm had stored in its computer system (AIM Newswire, 2012).
References
AIM Newswire. (2012, september 14). Security breach in apple products due to anonymous offshoot group. . Retrieved from Security Breach in Apple Products due to Anonymous Offshoot Group
Bundgaard, T., Bejjani, J., & Helmer, E. (2006, April 12).Strategic report for southwest airlines. Retrieved from http://economics-
Carvalho, J. A., & Ramos, I. (2006). Understanding information systems in organizations: From anthony’s framework to the organizational mind. (Masters thesis, University Of Minho)Retrieved from http://www3.dsi.uminho.pt/iramos/files/Papers/OrganizationalMind2_IsabelRamos.pdf Read More
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