What Service Industries Make Extensive Use Of Computers

Businesses can employ engineering to gain competitive advantage and increase on their (ROI) return on investment. A business is driven by five major forces and these include; (ane) Buyer power, (2) Supplier power, (three) Threat of substitute products or services, (4) Threat of new entrants, (5) Rivalry among existing competitors. All these 5 forces will decide the success of any business, so business people can utilise applied science to gain their competitive advantage basing on those five factors. In brief let me explain nearly each of the above factor and on the later phase we shall see how a business tin use engineering science to gain competitive advantage.

(ane) Buyer power: buyer power is high when buyers have many choices of whom to buy from, and its low when their choices are few. As a business person, this is what you demand to sympathise, if the buyers in a item manufacture concord a lot of power that industry is less bonny to enter, because these buyers tin can easily shift their interest towards your competition and your business volition be left hanging.

(two) Supplier power: supplier power is high when buyers have few choices of whom to buy from , and depression when there are many choices. As a business person, this is what you need to know, If the suppliers in a detail market hold a lot of power, that market or industry will exist less attractive to enter. A good case is "THE OIL INDUSTRY" in this industry, suppliers concord a lot of power, in many cases they hold the supply of oil with an intention of increasing prices. And then when the industry has a few suppliers, it will be risky to enter such an manufacture. In economic science, forces of demand and supply are fundamental factors in business growth. Yous as a business person, you will be in the middle of these two forces.

The Five Forces Model

(three) Threat of substitute products or services: If their very few alternatives to using a product or service the threat of substitute products or service will exist low, so this will be a lucrative industry to enter because customers will accept less choices. This can upshot when there are switching costs associated with the product or service, some customers will experience reluctant to switch to some other product or service which is good news to a business organisation person.

(4) Threat of new entrants: The threat of new entrants is high when information technology is like shooting fish in a barrel for competitors to enter the market. As a business person, this is what you lot need to know. If it is like shooting fish in a barrel for others to enter the market, shy away from that market, and if it is difficult for them, so this can be good news for you. Business organization owners can utilize technology to make information technology hard for others to enter their markets.

(5) Rivalry among existing competitors: An industry is less attractive when the rivalry among existing competitors is loftier and more than bonny when information technology is depression. Equally a business organisation person, you lot must e'er consider the intensity of competition in any given industry.

'' Now that you accept learned the five forces which bulldoze a concern, lets acquire how you can use technology to gain competitive advantage''

Use technology to Increment buyer'due south power for a specific product or service: In a whatever competitive market, buyers volition take many choices. And then for any small concern to gain competitive advantage in such a tight market, it will take to use technological tools to attract customers' attending towards its services or products. In this instance a business concern tin can do various things which tin can include, using the internet to promote rewards and coupons to its customers, yous tin can services like woobox.com to aid you lot in setting up coupons and rewards on diverse social networks. Rewards can be set in such a manner, that whenever a customer purchases a product or use a service, they become points which can be converted into shopping points. The business can also use shopping coupons to attract customers attention, in this case, a business tin use medias like social networks (facebook or Pinterest) to promote these shopping coupons, so each customers to comes to their store with that coupon they become a 10% disbelieve. With such offers, customers will divert their ability to your services or products and this will keep you a caput of the competition.

Employ engineering to reduce supplier power: Equally nosotros saw in the points above, that a high supplier ability can bear on a business especially when the supplier decides to concur goods or services with an aim of increasing prices. For any business to succeed, it must find ways to subtract supplier's power, and the best way to do this is to locate alternative sources of supply. Technological tools like the internet can aid a business notice more suppliers in their niche. Internet has a concatenation of B2B marketplaces which can help small businesses find alternative suppliers. A B2B market place is an internet-based service which brings together buyers and sellers. In this example the buyer is a small business owner and a seller is a supplier. A expert example of popular Concern to Business online marketplaces is Alibaba.com, aliexpress.com, made-in-china.com to mention but a few.

Use technology to create entry barriers: Use technology to create entry barriers: For any concern to succeed, it must create barriers to its market using engineering. If the marketplace is so piece of cake to enter, the business volition not survive for so long. Businesses should not settle for survival, they accept to plan and brand sure that they volition rule the market for a longer period. Most successful companies like "Google , Facebook , Coca cola , Apple , Nike , Amazon , Dell , Microsoft , Zappos have used technology to stay a head of the market, they have institute ways of blocking competition and this has gained them competitive advantage in the marketplace. If you ain a pocket-sized business organization, you can also utilize technology to make it the tiptop. An entry bulwark is a production or service characteristic that customers have come to expect from companies in a particular manufacture. Entry barriers make information technology more difficult for competitors to enter a detail market. Let'south look at an example on how Google is using its applied science to gain competitive reward over Facebook. Recently Google introduced its new social network chosen ''Google Plus +'' , this network has taken reward of Google search technologies to show case profiles of business using ''Google Plus'' in the search results of Google.com , this has enticed many business owners to leap on ''Google plus and create profiles for their business.

See example of the search I made on Zappos in google: