• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

THE COMPARISION AND CONTRAST OF THE SOURCES OF COMPETITIVE OF COMPETITIVE ADVANTAGE BETWEEN THE SOFTWARE & COMPUTER SERVICE INDUSTRY AND THE BANKING INDUSTRY IN THE UK

Extracts from this document...

Introduction

THE COMPARISION AND CONTRAST OF THE SOURCES OF COMPETITIVE OF COMPETITIVE ADVANTAGE BETWEEN THE SOFTWARE & COMPUTER SERVICE INDUSTRY AND THE BANKING INDUSTRY IN THE UK AN ESSAY ON STRATEGIC MANAGEMENT(1B0 3014) PREPARED BY DECEMBER 2008 INTRODUCTION The general environment in which a firm operates is extremely complex. The general environment consists of interrelated elements or forces that can have an impact on a firm's strategic plans of gaining competitive advantage over its competitors. In order to gain strategic position, there must be an in-depth understanding and analysis of the general environment which should be matched with a critical evaluation of a firm's internal capabilities without which opportunities cannot be utilised and threats adequately managed. THE INDUSTRY An Industry can be defined as a group of firms on the same side of the market, which produce goods which are close substitutes and compete for the same markets This essay will be looking to compare and contrast the sources of competitive advantage between the software/computer service industry and the banking industry in the United Kingdom. THE SOFTWARE AND COMPUTER SERVICE INDUSTRY According to the culture UK government website, the activities of firms in this industrial sector consist of the development of system software; contract/bespoke software and turnkey solutions, systems integration, system analysis and design, software architecture and design, project management and infrastructure designs. An example of firm in this industry is ORACLE CORPORATION which specialises in providing Information Technology solutions and advice on Information Management. ...read more.

Middle

The current take over bid proposition by Lloyds TSB of HBOS is a good example because this has resulted in share price appreciation and improved image for the organisation. This explains the fact that every business leans on the growth of the economy. SOCIAL: This relates to the beliefs, values and norms that guide actions and behaviour in the environment in which a firm operates. Failure to pay attention to what the society in which a firm operates belief in and value, will seriously hinder the ability of the firm to gain completive advantage in the market. This explains why most banks are introducing some products to suit some belief. Example is the introduction of Islamic banking by most banks. TECHNOLOGICAL: This has been the most dynamic aspect of today's changing world. A firm that is not up to date with technological innovations, changes and development will be faced out of the market environment (threats) while opportunities will be created for firms that is up to date with technological changes. EVALUATING THE FIRMS INTERNAL CAPABILITIES The resource based theory perspective looked at the company from inside-out. It emphasises that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. This perspective highlights the need for a fit between the external marketing context in which a company operates and its internal capabilities. RESOURCES: Resources are the firm specific assets such as capital useful for creating a cost or differentiation advantage and that few competitors can easily acquire. ...read more.

Conclusion

It is not only important for a firm to gain competitive advantage; it must ensure that is sustained. This is the focal point of competitive strategy Sustaining competitive advantage allows the maintenance and improvement of the business competitive position in the market. It is the ability to sustain the competitive advantage gained that will allow the firm to survive over a longer period of time in today's world of active competition. In order to continue to be competitively positioned, a firm should build its sustainable competitive advantage on its corporate capability which represent its strength and must constantly reinvent it to eliminate any threat which may develop thereof. CONCLUSION In conclusion, It can be seen that the activities of both firms to focus on customers satisfaction and exploiting opportunities in the volatile market environment has brought about new forms and sources of competitive advantage in terms of: * Offering greater differentiation through product innovation * Altering competitive scope through providing increased focus upon customer relations * Lower cost in a number of areas through focused customer service (e.g. Marketing, Segmentation, etc) It is therefore important that the firm wishing to gain competitive advantage engage in constant innovation and heavy investment in research and development because marketing activities in today's world has shifted from product or service oriented to customer oriented. Customers are more interested in the ability of the product or service to satisfy their desire than what the product or service is. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. PEST analysis of uk mobile network industry

    In 2007, members of the EU agreed to force a slash on roaming charges and the legislation was backed by consumer advocates and campaigners. The law came into force in June 2007.

  2. Environmental Analysis - Supermarket Industry

    This depends on how many suppliers there are to choose from. The suppliers in supermarket retailing are not monopolistic. As a result they may not be able to extract a high price from the retailers as they have the choice to go elsewhere.

  1. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    The "edge of chaos" is also the position of optimal adaptability and buffering, as extremely chaotic systems are not able to sustain new behaviors and extremely ordered systems do not allow new behaviors to be incorporated (Schneider & Somers, 2006).

  2. The main aim of this study is to determine and learn the competitive strategies ...

    The best solution is not to hike prices for products that the customer can live without or go to some other store and purchase the same product for less price. Another reason some retailers find it very difficult to change prices is that the process of altering prices has got a cost.

  1. General Management - organisation, leadership and theories.

    Developing Plans for Attaining Goals. Def´┐Żning organization al goals and objectives is the first step in the planning process. Thc second step - which is equally important - is to define plans for meeting objectives. Targets mean little if managers do not map ont the path ways to them.

  2. Cisco Systems Uses Its Culture for Competitive Advantage Case Study

    I feel that Cisco Systems use a clan and adhocracy culture rather than a market and hierarchy. It really depends on the company and what it values as important because some companies like Home Depot focus on competition and has to have a strong market culture to survive.

  1. Management principles and theories and their application to the construction industry.

    It may lead to polarization of efforts, whereby, people or departments are not motivated to look beyond their own targets and help others 4. It doesn?t consider the environment in which the goals are set e.g. available resources, stake holders etc.

  2. PESTEL and Five Forces Analysis of the Cuban Cigar Industry.

    -->Product Differentiation: With many Cuban cigar industries available there are already different brands with different combinations and blends in their cigars.To compete with them bard differentiation seems to be the only way.And its not that easy to come up with a different blend fro the cigars.Even if we do its

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work