Please summarize the below so it can become easy to understand and memorize for exam purposes. The below answer belongs to this question (Write a note on how the genetic strategies will change because of IT). The answer to summarize: There are four generic strategies, each often enabled by using information technology and systems. These include low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy. Low-Cost Leadership Walmart keeps prices low and shelves well-stocked using a legendary inventory replenishment system. The system sends orders for new merchandise directly to suppliers as soon as consumers pay. Suppliers can also access Walmart's sales and inventory data using Web technology. Because the system replenishes inventory with lightning speed, Walmart does not need to spend much money maintaining large inventories of goods in its own warehouses. An efficient customer response system directly links consumer behavior to distribution and production and supply chains. Product Differentiation Manufacturers and retailers are using information systems to create customized and personalized products and personalized services to fit the precise specifications of individual customers. For example, Nike sells customized sneakers through its NIKEiD program on its Web site. Customers can select the type of shoe, colors, material, outsoles, and even a logo of up to eight characters. Nike transmits the orders via computers to specially equipped plants in China and Korea. This ability to offer individually tailored products or services using the same production resources as mass production is called mass customization. Focus on Market Niche Information systems enable companies to closely analyze customer buying patterns, tastes, and preferences to pitch advertising and marketing campaigns to narrower target markets efficiently. Data come from a range of sources-credit card transactions, demographic data, and purchase data from checkout counter scanners. Sophisticated software tools find patterns in these large pools of data. Analysis of such data drives one-to-one marketing that creates personal messages. Hilton Hotels' OnQ system analyzes data collected on active guests in all of its properties to determine each guest's preferences and profitability. Hilton uses this information to give its most profitable customers additional privileges, such as late checkouts. Credit card companies can use this strategy to predict their most profitable cardholders. The companies gather vast quantities of data about consumer purchases and other behaviors and mine these data to construct detailed profiles that identify cardholders who might be good or bad credit risks. Strengthen Supplier and Customers intimacy Use information systems to develop strong ties and loyalty with suppliers and customers. For example, Chrysler Corporation uses information systems to facilitate direct access by suppliers to production schedules and even allows suppliers to decide how and when to ship supplies to Chrysler factories. This allows suppliers more lead time in producing goods. On the customer side, Amazon keeps track of user preferences for book and CD purchases and can recommend titles purchased by others to its customers. Strong linkages increase loyalty to the firm and the cost of switching to a competing product.
Please summarize the below so it can become easy to understand and memorize for exam purposes. The below answer belongs to this question (Write a note on how the genetic strategies will change because of IT).
The answer to summarize:
There are four generic strategies, each often enabled by using information technology and systems. These include low-cost leadership, product differentiation, focus on market niche, and strengthening customer and supplier intimacy.
Low-Cost Leadership
Walmart keeps prices low and shelves well-stocked using a legendary inventory replenishment system. The system sends orders for new merchandise directly to suppliers as soon as consumers pay. Suppliers can also access Walmart's sales and inventory data using Web technology.
Because the system replenishes inventory with lightning speed, Walmart does not need to spend much money maintaining large inventories of goods in its own warehouses.
An efficient customer response system directly links
Product Differentiation
Manufacturers and retailers are using information systems to create customized and personalized products and personalized services to fit the precise specifications of individual customers. For example, Nike sells customized sneakers through its NIKEiD program on its Web site. Customers can select the type of shoe, colors, material, outsoles, and even a logo of up to eight characters. Nike transmits the orders via computers to specially equipped plants in China and Korea. This ability to offer individually tailored products or services using the same production resources as mass production is called mass customization.
Focus on Market Niche
Information systems enable companies to closely analyze customer buying patterns, tastes, and preferences to pitch advertising and marketing campaigns to narrower target
Data come from a range of sources-credit card transactions, demographic data, and purchase data from checkout counter scanners. Sophisticated software tools find patterns in these large pools of data. Analysis of such data drives one-to-one marketing that creates personal messages. Hilton Hotels' OnQ system analyzes data collected on active guests in all of its properties to determine each guest's preferences and profitability. Hilton uses this information to give its most profitable customers additional privileges, such as late checkouts.
Credit card companies can use this strategy to predict their most profitable cardholders. The companies gather vast quantities of data about consumer purchases and other behaviors and mine these data to construct detailed profiles that identify cardholders who might be good or bad credit risks.
Strengthen Supplier and Customers intimacy
Use information systems to develop strong ties and loyalty with suppliers and customers. For example, Chrysler Corporation uses information systems to facilitate direct access by suppliers to production schedules and even allows suppliers to decide how and when to ship supplies to Chrysler factories. This allows suppliers more lead time in producing goods.
On the customer side, Amazon keeps track of user preferences for book and CD purchases and can recommend titles purchased by others to its customers. Strong linkages increase loyalty to the firm and the cost of switching to a competing product.
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