This document discusses various strategies for achieving competitive advantages through management information systems, including cost leadership, differentiation, and niche strategies. It describes using performance-based information to become the lowest cost producer through reducing costs, increasing efficiency, and outsourcing. Differentiation strategies involve delivering superior, different, or unique products and services. Niche strategies target a specific group of consumers with unique needs. Improving and introducing new products and services helps companies gain advantages and stay ahead of competition.

1. MANAGEMENT INFORMATION SYSTEM

3.  Strategic Planning for competitive Advantages
◦ Cost Leadership
◦ Differentiation
◦ Niche Strategy
◦ Altering the industry Structure
◦ Creating New Products and Service
◦ Improving Existing Product lines and Service
◦ Other Strategies
 Performance-Based Information System

5.  Becoming the lowest cost producer in the company
 Reducing the costs of raw materials
 Reducing warehousing and shipping costs
 Becoming more efficient
 Outsourcing to cut costs when making products or
completing services
 Leading to strong market share and profit margins

6.  a product that is superior to the competitor’s product
 Deliver different products and services
 Involve producing a variety of products, giving customers
more choices, or delivering higher quality products and
services
 Try to create a product or service that is considered unique
within their industry

7.  Deliver to only a group of consumers
 An attractive opportunity to small businesses forced to
compete against the larger competitor
 Three rule for niche marketing
◦ Meeting the market’s unique needs  consumers & market research
◦ Say the right thing  grab group of consumer’s interest
◦ Test market  start with small investment

8.  “But I think everybody could use my product
and if I limit my market, I will get fewer sales.”
 “Okay, if you want to market your product to the
world, how many millions of dollars do you have to
invest?”

9.  Change the industry to become more favorable to the
company or organization
 Creating strategic alliances or strategic partnership
 (An agreement between two or more companies that involves
the joint production and distribution of goods and services.
Sanete understands this
one and then delete it
from slide )

10.  Introduce new products and services periodically
 helps a company gain a competitive advantage
 Companies that stay on top are constantly developing new
products and services

11.  To success in creating new product
◦ Ask the market
◦ Understand the needs of the target audience
◦ Gain sufficient competitive knowledge
◦ Understand current trending
◦ Learn from the past

12.  Keep up with competition  update your product to meet
customers’ need + reflect the latest in technology
 Increase sale  increase new service  increase profit
 However
◦ doing so will reduce sales of older item
◦ Poor marketing  do enough market research + done
skillfully

13.  Growth in sale
 First to Market
 Customizing products and services
 Hiring the best people
 innovation

15. Cost reduction
and Productivity
Competitive
advantage
Performance-
based
management