Technology and Strategic/Competitive Position

Information technology promotes competitive rivalry putting some of the products of companies far ahead of the competing products in the market. Information technology has a huge impact from the promotion of a product that in turn affects distribution in a positive way. Companies that make good use of IT are able to market their products effectively online and create a demand. As a result, a product gains a high demand for supply increasing the pricing. IT also boosts distribution. When a product achieves a high competitive position as compared to its competitors, it dissuades some of the new entrants due to a low market. On the contrary, the use of IT can influence other companies to use IT in a greater ay for their products rivaling the former e.g. Amazon and Apple.

Digital media tools integrated into the the Mac, iPhone, iPad, and iPod touch instill confidence in and out of the classroom. Students who have difficulty with traditional forms of classroom communication can express themselves using iLife softwarethrough slide shows, movies, audio presentations, and music. Hearing-impaired students can use sign language to communicate using video iChat1 and FaceTime.2 Because these and other tools are standard, the same hardware can serve everyone in your classroom, including those with diverse needs. And, with all the educational apps available in the App Store, you can personalize learning for each and every student(1).

Information technology influences a greater bargaining power for both the supplier and the consumer. The supplier bargaining power can influence the price targeted for certain goods due to technological features within the product. A quality product with advanced information technologies will give the supplier an advantage on a consensus of the pricing. The price is likely to be higher especially if competing products do not have the same kind of IT features. Customers can be enabled to achieve a greater bargaining power of a product due to IT aspects. Instances where the market has several products with information technology features can help a customer base their bargaining on comparisons of the product they intend to buy to other products in the market. Familiarization with the levels of IT employed in a product improves the customer bargaining power

Information technology is a reason behind the rise of substitute products or services that threaten the existing market. A company that could have additional IT features to a product e.g. a mobile phone may threaten the existing market by having a higher demand from the consumers.

Questions section :

1. Information technology is a reason behind the rise of substitute products or services that threaten the existing market. A company that could have additional IT features to a product e.g. a mobile phone may threaten the existing market by having a higher demand from the consumers.

What companies can benefit from the technologies you describe? How and why?

2. Apple has established brand loyalty which means customers know that Apple produces quality products. With having IT and multiple suppliers for Apple products, the suppliers definitely gain more bargaining power. Some of these suppliers are brands such as the Apple Store, Target, Walmart, Best Buy, etc. This may also contribute to your question. How does IT help? The suppliers can use their IT resources to determine if their supply is in demand or not, the growing market trends and changes, and know if they are selling for too little