Competitive Advantag of

Information Technology
Team Members
Roll No

 Nisha Singh 51

 Shweta Singh 52

 Sukhdeep Singh 53

 Vipul Solanki 54

 Bhavi Soosania 55
“Information Technology
is the use of hardware,
software, services, and
supporting infrastructure
to manage and deliver
information.”
Six Major Roles & Goals of
IT
1. Increase employee productivity by reducing time,
errors and costs using

2. Enhance decision making

3. Improve team collaboration

4. Create business partnerships and alliances

5. Enable global reach all over the world
taking into consideration the culture of
each nation or society.

6. Facilitate organizational transformation as

the organization evolves and responds to
the ever-changing marketplace.
New Products & Services Based on IT

New Product or Service Underlying Technology

On-line banking Private communication networks;

Internet

Cash management accounts Corporate-wide customer

account systems

Global and national airline, hotel, Worldwide telecommunication-

and auto reservation systems based reservation systems
Competitive Advantage
 A competitive advantage is an advantage over competitors who
gain by offering consumers greater value, either by means of
lower prices or by providing greater benefits & services.

 It is the ability gained through resources to perform at a higher

level than others in the same industry or market.

 It is what sets the firm apart from the rest of its competitors,
thus superior performance reached through competitive
advantage will ensure market leadership
 Basis for competition
 Cost

 Speed

 Quality

 Variety

 Level of service
Information System stratergies for Dealing with Competitive Forces

 Low-cost leadership

 Product differentiation

 Focus on market niche

 Strengthen customer and supplier intimacy

The Internet’s Impact on Competitive Advantage

 Enables new products and services

 Transforms industries

 Increases bargaining power of customers and suppliers

 Intensifies competitive rivalry

 Creates new opportunities for building brands and large customer bases
Dell has a history of achieving Double-Digit increases in annual sales.

To maintain this growth dell has faced many challenges due to constant
changes in general environment, in the industry, in maintaining its
competitive advantage.
 The market for PC’s targeted all ages such as kids,
teenagers, corporate, & institutional customers

 The company is based on the simple concept that dell

could best understand customers needs & efficiently
provide the most effective computing solutions
 DELL was the 1st pc manufacturer to cut out the
middleman & sell direct pc’s to its customers. hence
passing the savings on to the customers

 In dell each computer is built to order instead of mass

production of the same computer.
 Direct Model

 Easy to describe difficult to duplicate.

 As orders come in the factory via website or call centers, the

company relays to its suppliers details of which components it needs
& when.

 All these hardware then roll up in vans to big bays at the back of the
building & roll again as complete computers just a few hours later.
 Competitive Advantage of Dell over
Others

 Dell’s main competitive advantage has been its

direct selling strategy.

 Its about giving customers what they want, when

they want.
The key components of its strategies are quick
moving, direct distribution & build to order,
customization concept.

Dell has Just In Time(JIT) inventory system &

very good supplier integration. This has helped in
cutting down inventory costs & also reduce the
lead time in serving customer order.