Next topic after Introduction of HRIS is Competitive Advantage. This topic overall affected by technology. Why it was technology? Because, by using technology, the organization can fluently drive their business strategies in order to gain their organization output and it also can change the way business compete. There are five competitive strategies in HRIS which is:
1. Cost Leadership
In such the companies was low their cost producers to help the supplier and customer to enjoy the reduce cost of that product. But, sometimes the company was increase their cost in order to make compete with others.
2. Differentiation Strategy
The differentiation of strategy also can improve the firm’s product as well as their result marketing from its competitors.
3. Innovation Strategy
The companies have their own initiative to improve and transform the unique product to make the high attraction of customer to company’s product or services.
4. Growth Strategy
The growth strategies is the best plan and decision of the company in order to enlarge their company capacity to produce and expand it into a global markets
5. Alliance Strategy
This strategy was exposing to suppliers, competitors, and other companies in order to establish the linkage and alliances it.
To a large degree, these five market forces collectively determine the ability of a firm, whether large or small, to be successful. Obviously, all industries are not alike; therefore, each force has varying impact from one situation to the next. Porter identifies numerous elements of industry structure that influence these five factors. Detailed explanation of them is, however, beyond the scope of this discussion. Briefly stated, these factors influence the creation of a competitive advantage as follows:
Buyer power influences the prices that firms can charge, for example, as does the threat of substitution. The power of buyers can also influence cost and investment, because powerful buyers demand costly service. The bargaining power of suppliers determines the cost of raw materials and other inputs. The intensity of rivalry influences prices as well as the costs of competing in areas such as plant, product development, advertising, and sales force. The threat of entry places a limit on prices and shapes the investment required to deter entrants.
The explanation by Dr.Nur Naha and my tutor about the competitive force was clearer for me to understand because to succeed, the business must develop strategies regarding by this forces such as:
· Rivalry of competitors within its industry (such as the product of communication have various branch to compete each other)
· New entrants into an industry and its market (the new branch that involve in the big famous product e.g: CSL is the new branch of hand phone product)
· Substitute products that may capture market share (services or the facilitate that the branch provided to customer as well to be more attractive)
· Bargaining power of customer
· Bargaining power of supplier
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