Question

1) How does information and knowledge management link to competitive advantage? Discuss the reasons why or why not a dominant firm might or might not consider attacking smaller competitors to increase market share?

2) Companies have to update their strategy on a regular basis but sometimes need to look at radical change, briefly explain these two types of Strategic Change and how they might affect company organization. Define incremental and transformational change.

enter academic citations.

Answer 1

1)Information is the facts and knowledge is like understanding. A combination of facts and knowledge when delivered at the right time gives a competitive edge to an organization. If we see at the organization's biggest asses it's nothing but the people working there. The human resource.When the right team is sharing the right knowledge help the individual along with the organization to grow and prosper. This sharing is facilitated by the available tools in an organization. When information and knowledge sharing barriers are removed means people can learn within an organization from the experience in departments. This helps to increase the sustainability of the firm in the long run and hence improved knowledge help to strengthen the company's base and leads it to the path of development. Inability to capture value from the information the organization can lead to poor performance. Quantity of knowledge can lead to quality, but only if used well. Tangible resources are a source of strength of an organization but not a source of long-lasting competitive advantage, Only intangible capabilities such as creativity, talent, innovation, knowledge can make it survive long.

The dominant firm competes with close competitors. Acquiring small firms and getting a meager percentage of market share won't help against big competition. For example, Hyundai competes with Tata or Maruti and not with Mercedes. Competing with immediate competitors increases a firm's ability to sustain competition and stay in the market for the long run.

2)Strategic change is said to be a firm's movement from the present state to a future state by increasing its competitive advantage. This change is about an organization's technical, cultural, and political aspects.

Incremental change: This can be said as minor changes in the organization. It's not about changing core value or anything major but can be said as slight adjustment. It's a first-order change which just modifies, adjusts, or refines an organization. It happens in a series of smaller changes and takes place over a long period of time. Example- when you want to bring a change in the organization's software.

Transformational change: It is said as those changes that completely alter the current structure. These changes will have huge changes to the processes, people, and typically technology. Once you take these steps, you can’t take your step back. It doesn't happen by accident but requires proper planning, coordination, and controlling.these changes are often related to a significant change in firms' culture it's strategy or you can say it's a complete renovation of the organization.

For citations you can read articles of Herbert S Kindler.