Managerial Applications of Technology(Technology and Strategic/Competitive Position )1 - Assignment Example

Managerial Applications of Technology Information systems have many competitive advantages. To ensure competitiveness, any companyhas to ensure its information systems is related to the business goals. There should be an agreed set of priorities that the companies have put in place and improved communication between business units in order to experience success in use of information systems.For instance, Wal-Mart uses its information systems to achieve success. The store guards its information systems from possibly harmful effects of strategic information systems.

It is a case where the basis of competition is information systems or where the information system may expose the company’s problems and give more bargaining power to customers (Power 2002). Information systems have impacts on rivalry between competitors. The situations where rivalry is high, the profits are low and vice versa. For example, the rise of the internet has effects on music retailers. The traditional retailers are losing customers because majority of people have opted for online music.

It has caused stiff competition between various music retailers. Competing in the online markets is expensive, forcing firms to collaborate with new entrants in the markets. The new entrants become dominant. For example, the traditional music retailers could collaborate with Amazon, who has a highly scalable cost structure. Additionally, the traditional retailers of music still use plastic discs as means of storing music. The technology has made digital music files as a substitute for plastic discs.

Customers in the market have a variety of options. However, they choose the company that does not support online piracy. It gives the customers the bargaining power. Such case will see an increase in the bargaining power of suppliers, in this case the artists (Gallaugher, 2014). ReferencesGallaugher, J. (2014). Information Systems: A managers Guide to Harnessing Technology. The Five Forces of Industry Competitive Advantage.Power, D. J. (2002). Decision Support Systems: Concepts and Resources for Managers.

Greenwood Publishing Group.Somogyi, E. K. (1987). Towards Strategic Information Systems. CRC Press.