Information System for Competitive Advantages

Information system is becoming familiar in many sectors. Nowadays, many organizations have their own website to allow other people to view. Information system can let an organization become more competitive in their sector. Information technology is a platform for the organization to communicate with customers or others. The people can know and get information of the organization by surfing internet. Not only that, the people also can get the services of the organization via information technology. People also can express their feeling about the organization through information technology. At the same time, organization also can collect more information to promote their products and services according the consumers’ needs. Organizations also can identify the target group of consumers and collect the new information for new products. Information system also gives directly impact on product strategy, price strategy, promotion strategy and place strategy for achieving competitive advantages (Shin, 2001). By using information technology is also a good way for the organization to become more competitive. The organizations from the same sector may compete with each other and information technology has its advantages to let the organization become more competitive with others. Information technology is a cheaper way for organization to promote their products, services, capabilities and others. According to Porter (1980,1985) and Porter and Millar (1985),  an organization develops its business with five forces which are the threat of new entrants, rivalry among existing firms within an industry, the threat of substitute products/ services, the bargaining power of suppliers and bargaining power of buyers able to obtain competitive advantages with the competitors. For an example, AirAsia Airlines use information technology to make themselves become more competitive with their competitor such as MAS, Firefly and others. AirAsia provides many services to the customers. The customer can book tickets, searching the timetable of flight, check in by using internet and other services. As a user of information technology, I also realize that the information technology is powerful for an organization to become more competitive. People nowadays are busy to work; information technology is a good way for people to be up to date with the newest information. Therefore, IT is very important and brings advantages for organization to become competitive.