Information technology (IT) is hardware and software applications that are co-ordinated components that collect or retrieve, store and accessing or distribute culture to support business expression, decision-making and competitive usefulness (Huff, 1994, Laudon & Laudon, 2006).
Since introduction of computing machine in 1950 to formations, information technology has been deploying to stumble competitive favour for business organization. According to Ward and Griffiths (1996), that IT has gone through iii evolutions. First era, the computer is to automatic excavate-intensive processes to reduce labour represents. In the second era, emphasize in development of oversight information system that provides information for decision-making. Today, in third era, organization view IT to support existing business strategy, create bare-ass opportunities for business, competitive advantage and new strategy opportunities leads to new markets and products and pick in this quick and challenge environment.
A variety of factors strike been shown to have an important impact on the ability of the firms to gain competitive strategy advantage and sustaining competitive advantage, including the relative of cost positioning (Porter, 1980), products differentiation (Caves & Williamson, 1985, Porter, 1980) and the ability of firm to cooperate in strategical alliance (Chen & Chen, 2003, Lee & Vonortas, 2002).
The complexity of IT is transforming Porters value chain theory and is affecting the competition. It changes the industry structure and rules of competition (Porter & Millar, 1985). IT no longer a competitive advantage (Carr, 2003, Clemons & Knez, 1987 & Lieberman & Montgomery 1988) it had become strategic advantage (Carr, 2003 & Loudon & Loudon, 2007)
The purpose of this penning is to explain further whether information technology can or cannot really give a company a strategic advantage, because most competitive advantages do not last long. In additional, it is...If you want to get a full essay, order it on our website: Orderessay
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