Free Essay About Models For Competitive Dynamics
Comparison of the DYS and the GYB
Grow Your Business Strategy and Destroy Your Business are some of the strategic models that companies implement to improve their competitive advantage. It is evident that the two strategies are characterized by differences that impact the competitive advantage of businesses (Sears, 2013). Additionally, the difference between these strategies affects profitability and sustainability of a business in the market place in a different dimension.
On the other hand, Grow Your Business Strategy is based on a program that facilitates the success of small and large businesses through creating stability thus becoming competitive both locally and internationally. The elements of GYB involve: Development of business plans, review of strategies and mentoring business development plans. In this regard, this strategy is focused towards achieving long term benefits through enhancing business sustainability and competitive advantage (Sears, 2013).
Similarities between DYB and GYB
Both the strategies are based on certain specific elements that ensure the success of business entrepreneurs for instance: Destroy Your Business Strategy discourages pleasing clients owing to the fact that it may lead to failure of a business plan. Similarly, Grow Your Business Strategy is based on an element of business development plan as a means to enhance business competitive advantage.
Additionally, the strategies focus on creativity and personal development as a means of solving business challenges. In Destroy Your Business Strategy, entrepreneurs are discouraged from utilization of financial resources to solve various challenges, but are rather encouraged to focus on creativity and innovation. In a similar context, Grow Your Business Strategy highlights mentorship in development of business plan as a means to solve the various business challenges. That is, challenges facing businesses can be solved through mentorship programs, where individuals are taught on development of competitive business plans.
Information management and utilization seems to be a core value in both strategies. Destroy your business strategy encourages entrepreneurs to acquaint themselves with adequate business information in order to avoid probable failures. Similarly, GYB strategy is based on a core value of strategic review network programs, thus improve a business competitive advantage.
This is another common business strategy that has been applied among local and multinational businesses. It involves a scenario where a company’s new product sales and demand supersedes the sales and demand of existing or older products. That is, cannibalism occurs when a new product does not expand to new market segments but ‘eats up’ the market share of old products that affecting their sales (Blanton, 2014). Comparing this strategy to the Destroy Your Business Strategy in terms of growth, it is not an effective method. Destroy Your Business Strategy involves learning from failures and mistakes thus enabling business managers to avoid future challenges, thus leading to business growth. However, market cannibalism does not facilitate growth but facilitate short term business profitability from a new product.
In relation to competitiveness, market cannibalism may facilitate short term improved competitive advantage through a scenario where: The demand and sales of new products surpasses that of old products, thus creating short term competiveness (Blanton, 2014). On the other hand, Destroy Your Business Strategy creates a platform for learning through business failures and mistakes, a strategy that ensures proper mechanisms are implemented to avoid such problems in future. This is a long term strategy that basically creates long-term sustainability and profitability.
In regard to market leadership, cannibalism basically facilitates increased competitive advantage in a short-term basis where new products experience a high level of preference by customers. On the other hand, the core value of Destroy Your Business is to ensure effective business control by learning, thus leading to a long-term competiveness. A scenario where market cannibalism has facilitated short-term competiveness has been evident in the fashion industry where the demand Versace and clothing design surpassed that of other older designs such as Nike. The demand for Versace products skyrocketed in the last two years. However, it is currently experiencing low demand. Old designs such as Nike have maintained their demands, thus indicating a scenario of long-term competiveness. In the technology industry, the demand for Samsung mobile phones has increased as compared to the demand for Apple products despite the fact that Apple has maintained a stable market.
Changes in Business Strategy and Reassessment of Information System
The current business environment is characterized by high levels of competition technological developments. In this regard, businesses are compelled to undertake changes in their operational strategy in order to meet in the market trends. One of the most current changes exhibited in the business environment is a shift from manual business operation to e-commerce (Davis & Hamilton, 2012). These changes affect various components of a business operational strategy and Information System being one of these strategies has to be subjected through reassessment that leads to its improvement.
Majority of current businesses have employed e-commerce operational strategies owing to the fact that most clients currently prefer online business transactions. Information System within a business is a core element that determines whether a business may undertake e-commerce or not (Davis & Hamilton, 2014). Therefore, entrepreneurs should consider reassessing their information systems and determine if they are capable of providing online business transactions.
Reassessing Information system is also crucial owing to the fact that it creates a platform for managers and entrepreneurs to determine opportunities for improvement. That is, reassessing information system enables businesses to identify opportunities for improving their operations through identification of failures and successes. This enables managers to create solutions for identified challenges and how to further their success. Basically, this is an indication that information system reassessment is a trigger factor for changes and improvement.
How Firms Use Social IT in Alignment with Organizational Strategy and IS Strategy
Firms can use social information technology in alignment with their organizational strategy and information system strategy through a means that link their business activities to objectives, goals and results. This reduces the divide that may occur between social information technology and information technology majorly through perception of Social IT as a mere formidable and viable tool (Davis & Hamilton, 2012). Additionally, the successful application of Social IT can be undertaken through establishment of long-term business vision. Companies can achieve this through articulating visions for becoming pioneers in social IT operations and how this shall benefit internal and external stakeholders.
Moreover, firms can apply social media in alignment with their operational strategies and IS strategies through seeking the support of the executives. Most companies exhibit a scenario where social IT exists in isolation thus leading to failures (Davis & Hamilton, 2012). At some point, the use of social media may expand to affect the rest of the company. However, this can be effectively achieved by seeking the support of key business executives, with the business priorities and values rely on.
Blanton, D. (2014). Corporate Cannibalism. Lanham: Sparrowhawk Press.
Davis, G., & Hamilton, S. (2012). Managing information: How information systems impact organizational strategy. Homewood, Ill.: Business One Irwin.
Sears, D. (2013). Business Strategies. New York: AMACOM.