Chapter 2 HW - 9. Information technology cant really give a...

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9. Information technology can’t really give a company a strategic advantage because most competitive advantages don’t last more than a few years and soon become strategic necessities that just raise the stakes of the game. Discuss. In the current business environment, it is possible to achieve a strategic advantage over other companies in a given industry through proper implementation of information technology. Companies use information technology to gain an advantage in a number of different ways such as: lowering costs, differentiation, innovation, promoting growth, developing alliances, locking in customers or suppliers, building switching costs, raising barriers to entry, and leveraging investment (p. 48). Developing an advantage in an industry through any of these ways will lead to increased profits over competitors as long as the advantage remains. However, while competitive advantages can be created, the most difficult task a company has in today’s business climate is sustaining a strategic
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