Please describe FOUR Generic strategies for dealing with competitive forces, enabled by

using IT and how organization is benefiting itself putting these strategies in action.
Answer:

The four generic strategies for dealing with competitive forces enabled by using IT and their
application of getting benefits after putting these strategies in action are given below:
1. Low cost leadership:
In low cost leadership strategies, an organization produces almost similar product with
same functionalities, same features but introducing less price for the product than your
competitor. If right IT solution is implemented, one can design a product with variation,
features, functionality which some competitors will be struggling to give the market. It is
a strategy of providing superior product in lower cost than contenders while magnifying
quality and quantity of the service.

Example: Comparing Robi and Airtel few years back, Airtel was giving competitive price
with a limitation of network problem only if the consumer gets out of city areas. But
now Airtel’s service has developed with competitive price range.

2. Product Differentiations:
Under production differentiation strategy, everyone has same product with a slide
difference. If a slight difference sparks a lot difference that will brough about greater
amount of revenue.

Example: 10 to 20 years back, Tibbot, Cosco, Lux were market leaders with same
purpose and usability, quality and features. But then came Aromatic Beauty Soap,
produced by Meghna Group of Industries, with a significant slogan “Halal”, made it the
market leader then.

3. Focus on market niche:

Market niche strategy means focusing on a segment of a market which is specialized.
Organizations use IT to enable a focused strategy on a single market. This is called niche
market. Focusing on niche market reduces the threat of competitors and marker share,
it also enables more ensured profit than other products.

Example: Gluten free gummies, vegan chocolates and cookies, halal marshmallows,
shoes for transgender etc. are the examples of niche market products. These
organizations focus only on a particular segment of market. Sub-way a chain restaurant
allows customers to customize their sub.
4. Strengthen customer supply and intimacy:
This is a market strategy where service suppliers get closed to their clients. These
strategies utilize IS to build loyalties and strong ties with suppliers and customers.
Intimacy with suppliers per meets to provide necessary inputs which decreases expense.
If customers are served superlatively, it will lead to customer returning, raising profits
and revenues.

Example: High end hotels has computers to track customer preferences, they also have
platforms like Facebook pages to give them feedbacks. If their service is not satisfactory
according to the feedback, they fix their issues. Sometimes, customers can customize
environment according their special events in these hotels using the IS platforms.
Meena Bazar, Aarong, Swapno, Persona, Alvira introduced membership cards to
strengthen customer relationships by giving reward points after every transaction they
made.