Chapter 3 - It has been said that the advantage that leading-edge retailers such as Dell...

Chapter 3 - It has been said that the advantage that leading-edge retailers such as Dell and Wal-Mart have over their competition isn’t technology: it’s their management. Do you agree? Why or why not?

Course : MIS 6110

Solutions

Expert Solution

Yes I do agree that the advantage that leading-edge retailers such as Dell and Wal-Mart have over their competition isn’t technology: it’s their management.

Management organizes the factors of production, organizes resources & integrates them to achieve goals. Management has ability to utilize all physical & human resources productively & in best combination which reduces costs as we can see in the day to day operations of Wal-Mart. Management has ability to develop competitive strength by using strategic information systems, for example Dell which gained competitive advantage & expanded the operations & profits.

Though IT plays an important role in a firm’s development but it is time constraint. IT systems do not guarantee long lasting competitive advantage as they can be replaced & become outdated in a fast pace. Technology today which is considered innovative becomes common place. Though both Dell & Wal-Mart create strategic advantage by maintaining their technology, designing information system & maintaining relationship with customers, suppliers & business partners. But all this requires excellent management. Thus we can say that the advantage they have over their competition is their management.

Rahul Sunny answered 1 year ago

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