Importance Of Information Technology To Global Business Marketing Essay

Information technology is defined as the applications of computers and telecommunications that help the individual or business to keep and change the important data. It is also including the hardware and software that is used to do all of the daily work in the business and daily life. Information technology is important to business because it can help the business to increase their revenues and improve their performance to ensure that they can sustain in future and achieve the goal that have been fixed in the business.

Competitive advantage is defined as the characteristic of output on which customers place more value than the output provided by the competitors. It can be achieve by the organizations when they provide same value offered as it competitors but with the lower price, or they can charge the higher price with the greater value that worth with the money paid by the consumers through differentiation. [1] 

Global business is an organization or enterprises that are related in the transaction that carried out across national borders to fulfill the customers demand and increase the revenues and performance of the company. [2] There are a few important steps for the entrepreneurs before entering the global business. The strategic planning is important to the business to ensure that they will sustain in long term and achieve the goals that have been fixed.

Information technology is important to global business because it can bring the competitive advantage to its users. Competitive advantage can give many benefits such as increase the customers trust and loyalty, increase revenues and increase the company performance.

OBJECTIVES

The importance of information technology to global business

How information technology increase the competitive advantage

The relationship between information technology, competitive advantage and global business

BODY OF ARTICLE

Importance of information technology to global business

There are a few methods that can be use by the global business to communicate with the customers such as emails, fax and virtual conferences. Tracking method used for shipping and purchasing is the new innovations that can allow the businesses to confirm the quantity of goods and monitor the quantity of purchased. Spreadsheets and databases are essential method for global business because it can make the businesses easier to keep and manage their important data. The ability of businesses to communicate with the manager in different countries will allow the business to have a clear communications between each other. Video monitoring and inexpensive call in different countries also some of the ways that global businesses can use in their daily operations.

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Supply chain for global businesses is more complex rather than the local businesses because it’s involved vendors, factories, customers and consultant in different part. Keep tracking the process to develop the product until the purchased process will involve many steps in several countries. Strategic supply chain management is important to ensure that the process of deliver the output to the other countries will run smoothly without any mistake that will affect the company performance.

Information technology can help the global business to market their product around the world. With the existence of World Wide Web, it will enable the companies to advertise their output and sell the product in any part o the world. The electronic marketing will allows the businesses to introduce new or existing product that can make the customers aware and know about all of the product details. In this method, the sellers can provide the photo, video films, product specification and price which can help the companies to attract the regular or potential customers.

Information technology is increasing rapidly nowadays. In such, companies should always update their technology in business to ensure that the will manage the business efficiently. Based on the point given above, it shows that the information technology is important for global business to ensure that they will success in the international market. [3] 

How information technology increase competitive advantage

Information technology can help the global businesses to increase revenues. The existence of attractive website and electronic commerce can make the company to have the competitive advantage than the competitors that offered the same product. The design of the website should be easier for the customers to search the product details and to contact the companies if they have any inquiries. The website of the companies also should be easily to found in searches to ensure that the customers will aware about the existence of the companies. In electronic commerce, companies should have shopping cart and accept different online payment methods. If the businesses sell the product online, it can help the company to increase its competitive advantage.

Information technology can help to increase productivity and reduce operating cost. The computer networking will allow the employees in different countries to communicate with each other. They will be able to share files, applications and other data that can help them to finish their job easily. With low operating cost, company can get offer the product with lower price than the other competitors that offer the same product in the market and at the same time, they also can get the competitive advantage. [4] 

With the point given above, it shows that information technology is important because it can help the businesses to create the competitive advantage. Competitive advantage is essential to businesses because it can make the customers put the greater value to the product than the other competitor’s products.

Relationship between information technology, competitive advantage and global business

Information technology is including any hardware, software and other communication method that can provide many benefits to its users. Information technology can make the operation of the global businesses will be easier and the productivity of the product will be high. Current information technology is needed in the companies to ensure that they will not far behind from the competitors because the competition in the international market will be very high.

Information technologies that have been used by the global businesses will make them able to create the competitive advantage. Competitive advantage is when the customers put the greater value to the product rather than the competitor’s products. Competitive advantage can help the customers to trust and loyal with the product. It shows that the competitive advantage can make the companies to increase the revenues, performance and achieve the objective that have been fixed.

Based on the point given, it shows that information technology is essential to global business because it will create the competitive advantage and make the companies will be able to compete with the international market. However, competitive advantage in the business is not for long term. It is because, competitors will always find many ways to offer new product with greater value to attract the customers. So, it shows that the global business should always innovate their product to ensure that they always can have the competitive advantage and will be sustain in long term in the global market.

DISCUSSION

How to create a sustainable competitive advantage in global business

Companies should establish brand loyalty to create a sustainable competitive advantage. They should focus on providing the customers with high quality product and services and build strong relationship with the customers to ensure that the customers will trust and loyal with the product. Customers will always remain with a brand if they satisfied with it even though the price of product is higher than the other product in the market.

To sustain the competitive advantage, companies should continuously innovate their product. Nowadays, global businesses are always competing in providing the product that can fulfill the need and want of the customers. They will find many methods to add value to the new or existing product. So, it shows that the companies should always ensure that their products are up to date and compatible with the market.

Companies must hire connected employees to ensure that they can sustain the competitive advantage. These connected employees will help the company because they have the ability to contact the people that may be involve in the operations or marketing of the product in the international market. It can make the company able to share any information and new data that is important to the businesses. [5] 

Based on the point given, it shows that the sustainable competitive advantage can provide many benefits to its users. It can help the business to increase revenues, productivity and reduce the cost. When the revenues and productivity of the business is increasing, companies will be able to sustain in the global market for long term. If the cost of reducing the product is decrease, they also can produce the product in low price with high quality to attract the customers trust, loyal and continuously buy the product offered.

CONCLUSION

It is proven that information system will brings the competitive advantage which is important to global business to ensure that they will sustain in the international market in long term. Information technology is important to global business because it can make the businesses able to have a clear communication within the companies in different countries, better supply chain management and marketing of the product will be effective.

There is a strong relationship between information technology, competitive advantage and global business. It is because, information technology is important in global business to create the competitive advantage. However company should continually innovate their product because the competitors always find many ways to create the product with greater value to attract the customers.

To create a sustainable competitive advantage, company should establish brand loyalty and continuously innovate the product in the market. It is to ensure that the product is compatible with the international market and it can create the competitive advantage to the company.