CompetitiveDynamic Models
CompetitiveDynamic Models
Thecompetitivedynamics models thatinclude the DestroyYour Business (DYB) and the Grow Your Business (GYB) are quitecritical in shaping the goals of various business entities. Moreimportant, they are crucial in placing the firms in a position wherethey can compete with the other players in the industry. Thetechniques are also influential in making sure that a businessmaximizes more profits while being more sustainable as well. The twomodels will look at a problem from different perspectives to ensurethat they offer multiple solutions. This essay analyzes the DYB, GYB,cannibalization and reveals how the information system can bestructured to improve the organization’s performance.
TheComparisonof the DYB and GYB Strategies
Inparticular, DYB model helps in understanding the various issues thatmight undermine the competitive advantage of a firm. In this case,the management will use the approach in assessing how the variousoperations are implemented. The analysis will reveal the flaws thatmight interfere with the production or another aspect of theorganization (Casadesus‐Masanell& Zhu, 2013).In fact, it will also identify the beneficial aspects that theemployees should retain and the weaknesses that seem to make themless competitive in the market. In the process, of finding suchfactors, the approach often disrupts the business activities hence,the phrase ‘Destroying.’ It also helps the organization work outtheir weaknesses before the competitors exploit them to theiradvantage. More important, the realization of the faults is acritical way in which they can cement their place in the industry.All in all, DYB remains to be an influential approach where themanagement can retain their competitive position over the otherorganizations. On the other hand, GYB model is a technique that isused to expand the firm’s operations and the administration(Casadesus‐Masanell& Zhu, 2013).In the process, a company might use the GYB in devising methods thatwill be useful in creating new customer bases, identifying theirneeds and ways of satisfying them as well.
Comparingthe “Cannibalization” Model to the DYB Technique
Cannibalizationrefers to the way that a company might decide to create newcommodities that will take a market share of the preexisting goods.In this case, the approach often involves the same product line sincethey want to capture more clients (Pancraset al., 2012).The e-commerce has been known to use the same cannibalizationtechnique that has selected the bargain-priced oriented method. Evenif some experts might view the procedure as a poor practice, it tendsto facilitate ideas and also encourage risk taking as well. Moreimportant, it also urges the management to abandon the old commodityline and focus on the future market that has been introduced (Pancraset al., 2012).In fact, the scenario makes it more useful than DYB since it assertson perfect innovation that will pave the way for growth in the firm.It keeps looking at a business venture as a collection ofopportunities that are better than the present ones instead. Hence,the presence of enough resources can facilitate the transformation ofentities into larger firms. Clorox is one of the products thatadopted the cannibalization in the past. In particular, the laundrydetergent introduced the bleaching ingredient since it wanted tocapture a new market, but, it ended up sustaining massive losses(Pancraset al., 2012).Besides that, pet smart and Toys ‘R’ united and created an onlineventure where they sold their products as one company. In fact, theywere able to sell their products and attain higher profits than whatthey used to do when they owned separate stores.
Reasonsfor Reassessing the Information System
Changein an organization is inevitable, and it allows the management tounderstand the clients, reshuffle the objectives in order to be morecompetitive in the industry. In the process, the reassessment of theinformation systems might be crucial in ensuring that the business ison the right path. In particular, the change will be useful inidentifying if the preexisting information system is compatible withthe one suggested. The adjustment might involve adding or erasingsome data to make sure that it operates as expected.
Besidesthat, the reassessment is also more likely to improve the efficiencyof the entity in the long run. In this case, the firm often relies onthe information system to manage the operations and other criticaldecisions. Hence, an updated data gathering technique will be helpfulin gathering statistics on the market segment or even the competitors(Oestreicher-Singer& Zalmanson, 2012).Clearly, the data will identify how efficient the goods will be andwhether the customers will purchase more units.
Aproper information system will be able to provide the required datathat will assist the management in reaching better decisions. Forinstance, the presence of the accurate statistics is useful in thecalculation of the profits and costs in order to have fair wages oreven the prices. The enhanced systems are also necessary in storingthe required records that will present the information needed toestimate the proper course of action in a dilemma.
Howsocial IT helps with Organizational Strategy and IS Strategy inBusiness.
Theright technology is an instrumental part of defining how aninnovative firm looks like. More important, the organizations thathave incorporated technology in their operations are more likely tohave a broader marker and higher sales that will result in thegreater financial statistics. It will also help them in being morecompetitive in the industry since they will have a better way ofmastering how the other firms perform.
Thescenario shows that the various business ventures should adopt thesocial information systems since it is quite helpful. First, themechanism will be useful in listening to the needs and the concernsthat the clients might have. They might even decide to use communalforums such as Facebook and Twitter where they can be able tointeract with specific market segments. It might also assistmanagement in reaching a wider customer base (Oestreicher-Singer& Zalmanson, 2012).The staff can even understand how to improve the way that theyinteract with the clients and reach the required decisions and createthe accurate roadmaps that will determine their future.
Thesocial approach is a proper strategy that has a collaborativesignificance to the management. For instance, the feedback from theclients can be crucial in improving the firm structure and otherdecisions to ensure that they have the maximum returns as well.Hence, the strategies can be employed with the help of other tools tomake sure that the IT performance is also accurate. For instance, theIT tactic diagnostic analyzes the organizational health to determinewhether it interferes with the yields that the management will attain(Oestreicher-Singer& Zalmanson, 2012).The IT arrangement diagnostic tool is also another one that will worktogether with social IT to ensure that the business is on the rightpath. Besides that, the development, as well as vendor managemententails other activities that also benefit from the social incentivesthat the firm has suggested.
Conclusion
Inconclusion, the GYB and DYB play important roles in the managementeven if cannibalization seems more influential. On the other hand,the information system is a critical aspect of an entity, andeveryone needs to make sure that it is compatible with the objectivesthat the organization has. Apart from that, the Clorox as well as petsmart and Toys ‘R’ are a few examples that prove howcannibalization works. In the process, the management needs to adoptproper mechanisms that will decide how it will perform in thelong-run.
References
Casadesus‐Masanell,R., & Zhu, F. (2013). Business model innovation and competitiveimitation: The case of sponsor‐basedbusiness models. Strategicmanagement journal,34(4),464-482.
Oestreicher-Singer,G., & Zalmanson, L. (2012). Content or community? A digitalbusiness strategy for content providers in the social age. ADigital Business Strategy for Content Providers in the Social Age(July 01, 2012).
Pancras,J., Sriram, S., & Kumar, V. (2012). Empirical investigation ofretail expansion and cannibalization in a dynamic environment.ManagementScience,58(11),2001-2018.
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