Companys IT & Competitive Advantage Essay Example | Topics and Well Written Essays - 3500 words

Companys IT & Competitive Advantage - Essay Example The organizations and companies are under constant pressure of competition. First this competition was just with the local industries, organizations and companies, but as the world is coming closer and closer every day and is turning into a global village, the circle of competition has grown from local platform to the global platform. Now the firm of one country tends to compete with the firms of not only their own country but also the firms of other countries of the world.The use of information technology makes it a bit easier to compete. It makes them flexible and feasible, generates better productivity and yields better outcomes. It helps them far more than expected and is thought of in earning better profits, in fact even creating new sources of profits, which might include services like online business opportunities etc described by C Kenneth Allard (2004) such thatInformation technology can help a company to be less identifiable with all other related firms and be more differen t. It in fact can make a company stand out among the other competitors and can help it make and, more importantly, leave a mark of its own in the minds of the consumers, which goes a long way to help a company in achieving and maintaining competitive advantage.This is one of the major reasons why the statistics show a constantly increasing rate of growth in the part of the expenditure made on IT and its implications. In some of the areas, IT comprises as much as 50% of total capital investments.