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  • Essay / Evaluating the competitive advantage that can be...

    Information technology is an essential element of business processes that require technical skills beyond the scope of current management. Third parties to manage the company's IT functions. The outsourcing contract is part of the business process concept to a third party with specific skills and services. It allows organizations to focus on their efficiency and manage their resources effectively. When considering the industry economics and emerging sectors such as IT, business process outsourcing imposes a huge market potential. Competitive advantages are an advantage that a company has over its competitors, allowing it to generate greater sales or margins or retain more customers than its competitors. . There are many competitive advantages, including the company's cost structure, product offerings, distribution network, and customer support. Giving the company a competitive advantage over its competitors and the ability to generate greater value for the company and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize it. There are two types of competitive advantage: advantages, differential advantage, advantage or cost advantage, that is, the ability of a company to produce a good or service at a reasonable price. a lower cost than its competitors, which gives the company the ability to sell goods or services at lower prices than the competition or generate a greater margin on sales. A differential advantage is created when a product or service is different from its competitors and the company is considered better than a competitor's products by the customer. Some of the competitive advantages that can be achieved through outsourcing include: 2.1 Access to better and new technology With implementation. ..... middle of document...... by requiring organizations to observe this competitive advantage, they will acquire or develop resources to implement the planned strategy through direct duplication or substitution in any form without incurring no cost to the organization found first. Any competitive advantage gained by the first mover will compete to be taken over by its competitor, and it will have to compete with its competitors to copy the resources used in the competition.2.7 MobilityMobility is the ability to 'a company to acquire the resources necessary to easily find copies. competitive advantage over its competitors. Resource types such as hardware and software are easy to find and therefore highly portable and help generate competitiveness. Although resources are scarce, when it is possible to purchase or rent sources and the mobile source cannot contribute to a sustainable benefit.