Week 2

The subject of competitive advantage really caught my eye this week as we studied and proved how technology can play a key role in this area. Walmart, a company that we spoke a lot about, has many competitive advantages. Many thought for a long time that it was their low prices on such a wide variety of products all in one place. In reality, their supply chain management system has proven to be one of the best in the nation. Such advantages would be nearly impossible without the information systems world in which we now live. For example, when a Walmart product is bought at the store, a signal is directly sent out, on the hour for that product to be restocked from a nearby warehouse. There at the warehouse, a highly developed packaging system highlights which and how many of each product goes into each specified box directed to each store.


Some may look down on Walmart because of this advantage, and the way many small locally owned businesses have gone out of business because of it's unbeatable low prices. I personally look at them as furthering the boundaries of competitive advantage driving small businesses to look for other ways to rise up. Such competition is healthy in the economy and drives innovation and new ideas to a new level.


As far as competitive advantage goes, I think that Professor Andrea Masini of the London Business School makes a very good point when she said, “[...] whatever you do make sure your processes remain unique, otherwise even poor companies will be able to catch you up buying the same processes off the shelf.” [1] True that discovering such advantages and maintaining them may be very time consuming and pricey, it can either make or break any company. Thus, because of it's significant importance, a company would be wise to put this item at the top of a priority list, embedded in mission statements, and constantly implemented and revised when necessary.



[1] Cristian Annesley, "Bank CIOs must help to keep competitive advantage", Journal, http://www.computerweekly.com/Articles/2006/10/04/218897/bank-cios-must-help-to-keep-competitive-advantage.htm, Accessed 19 September 2009.