As HRIS has transformed the strategic HRM from caretaker to strategic partner, it had helped the organizations to achieve the strategic objectives as well as strategic goals. The ultimate goal or objective for each organization is to increase the profits as well as survive in the market. By having the HRIS system as a strategic partner, the organization can gain the competitive advantages to compete with the competitors.
The competitive advantages can be gained by using the competitive strategies. The competitive strategies include:
§ Cost leadership
§ Differentiation strategy
§ Innovation strategy
§ Growth strategy
§ Alliance strategy
Cost leadership refers to reduce the cost of business by using IT or technology. For example, peoples especially teenagers or Generation Ys nowadays prefer buying things online. It is cheaper and time flexible for them. Therefore, some organizations put their products online by using the platform such as eBay, Mudah.my, as well as Alibaba.com. The platforms enable the buyers or consumers to bid or decide on the prices of the products. By using this way, the organizations are able to reduce the cost of employing promoters or salespersons.
Differentiate strategy refers to the strategy that differ the products from competitors. Let us look about the telecommunication sector. The communication sector id developed from 2G to 3G and now until 4G. When other communication providers such as Maxis, Digi, and Celcom are compete to provide better 3G system for internet, P1 Wimax develop a new system known as 4G which internet speed is proven faster than 3G system. This makes P1 Wimax differ from the others communication system providers and it is the competitive advantages for P1 Wimax to survive in the market.
Innovation strategy is the strategy to create new products or services that includes IT components, to develop a new and unique market, as well as make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency, or customer services, or shorten time to market. For example, Dell is a computer maker which requires consumers to buy their computers or laptops online. The consumers will have to customize the products they desire when placing their order. This situation allows Dell to satisfy every single customer as well as reduce the stocks keeping.
Growth strategy refers to the strategy in expanding the company into global markets, expand company’s capacity, or diversify into new products. Nowadays, many of companies in Malaysia go into the global market. The companies started to export their products to other countries in this world. When the company able to compete in the world market or global market, they will be able to get more businesses and their profits will be increased. However, the key to compete in global market is IT. All of the companies whose go into global market will set up their official website. They will also communicate with the international buyers via internet. In this situation, they will have advantages in the competition with competitors.
Alliance strategy is a strategy which two or more organizations co-operate in competing with their competitors. This is clearly showed in the co-operation between Airasia Airlines and Tune Hotel. Airasia Airlines is in the transportation sector while Tune Hotel is in accommodation sector. However, they co-operate and come out with packages and promotions that can be booked or order through Airasia website. This strategy enables Tune Hotel to get most of the passengers of Airasia to accommodate in the hotel. For that, Tune Hotel has gained the competitive advantages.
No comments:
Post a Comment