Analyzing Enterprise System Strategies for Competitive Advantage

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This report delves into the significance of enterprise systems in attaining competitive advantage for businesses. It begins with an introduction to enterprise systems, highlighting their role in enhancing efficiency and productivity through automation. The report then explores the concept of competitive advantage and strategic planning, emphasizing how companies use various measures, including enterprise systems, to gain a leading position in the market. The report identifies cost leadership and change management as key strategies for achieving competitive advantage, using case studies of Coles (supermarket) and Samsung (IT industry) to illustrate these concepts. The analysis covers how these companies leverage enterprise systems to optimize operations, reduce costs, manage change, and drive overall development. The report concludes by summarizing the effectiveness of enterprise systems and their contribution to sustainable growth and market success, providing insights into the strategic advantages gained through these systems.
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Running Head: Enterprise strategy system
Enterprise strategy system
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Table of Contents
Introduction......................................................................................................................................2
Competitive advantage and Strategic Planning...............................................................................2
Cost Leadership............................................................................................................................4
Coles (Supermarket).................................................................................................................4
Samsung (IT Industry)..............................................................................................................5
Change management....................................................................................................................5
Coles (Supermarket).................................................................................................................6
Samsung (IT)............................................................................................................................6
Overall development....................................................................................................................6
Coles (Supermarket).................................................................................................................7
Samsung (IT)............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Enterprise strategy system 2 | P a g e
Introduction
In relation with the attainment of competitive advantage, various companies are unique measures
and amongst those unique measures, one of the trending and effective measures is adaptation of
enterprise system. Enterprise system is one of the great contributions of technology which
ultimately helps the organization to enhance its efficiency. It is a process influenced by
automation which helps the organization to perform its tasks without putting many efforts and it
also helps the organization to acquire higher outcomes. Although, there are numerous factors
through which competitive advantage could be attained but contemporary business organizations
have mainly concentrated over adaptation of enterprise system for the accomplishment of their
tasks so that positive outcomes could be attained (Sharma & Sykes, 2018).
The aim of this report will be to determine the effective of enterprise system and its contribution
in attainment of competitive advantage. With regards to this, three strategies will be discussed in
order to analyse how enterprise system can allow company to attain competitive advantage.
Further, report will aim to analyse the efficiency of enterprise system by analysing two big
company’s operations which are already operating their functionalities with enterprise system.
Competitive advantage and Strategic Planning
Competitive advantage is the term used in business context when two or more than two
companies compete in order to gain the leading board position. When one company gain
competitive edge over other company, other becomes more powerful, effective as well as
efficient. In order to gain competitive advantage, companies adopt various measures such as
introducing new and advanced methodologies at workplace for enhancing productivity,
providing training and development sessions for enhancing employees’ efficiency, etc. With the
effect of all these measures, organization could easily be able to accomplish its goals and
objectives which ultimately help in attaining competitive advantage. Another crucial objective
behind attainment of competitive advantage is enhancing its sales, revenues and profitability
along with developing brand image in the marketplace. Developing brand image is the main
attribute for attaining sustainable growth and development in competitive business environment
because goodwill of an organization act as the pull strategy under which customers becomes
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brand loyal along with this, it becomes easy for the organization to retain its existing and
potential customers along with target new customer segments.
With the help of an effective enterprise system, an organization could easily enhance its
efficiency as it is influenced by automation which does not require human efforts. Once coding is
done along with feeding the requirements of organization, that particular task will be
automatically accomplished with accurate results. For example, enterprise system plays vital role
in making financial statements of an organization. Traditionally, financial statements were made
by hands which were a lengthy process and there were huge chances of errors which were used
to be recognised after making all financial reports and due to whole procedure needs to be
analysed again for rectifying particular mistake. But, with the introduction of enterprise system,
organization could easily make their financial statements with just one click, thus, it has reduced
the consumption of time and human resources due to which those employees could be shifted to
other departments for accomplishing other organizational tasks in order to gain set goals and
objectives. With regards to the adaptation of enterprise system, it is must for an organization to
analyse its requirements along with determining the external market conditions. This helps the
organization to adopt appropriate techniques and measures in relation with the gaining
competitive advantage. This report will include the strategies adopted by Coles and Samsung
Corporation with regards to the enterprise system. These companies have adopted enterprise
system in order to enhance their performance along with the objective of accomplishing the tasks
in order to attain set goals and objectives (Alles, et. al., 2018).
With the help of enterprise system, both organizations i.e. Coles and Samsung Corporation have
attained an effective market share in their respective markets. Coles Supermarkets Australia Pty
Ltd. is functioning as Coles. It is a large retail and consumer service provider chain with its
headquarters in Melbourne. Coles is a subsidiary company of Wesfarmers and with more than
100,000 employees, organization has developed its brand image in the Australian retail industry.
Coles and Woolworths are two giant players of Australian retail industry and both of these have
acquired large part of the Australian market due to which chances for new entrants are very less
to set up their business against giant players. After adaptation of enterprise system,
organizational performance has been improved and this has leaded the organization to defend its
acquired position in the target market. With the objective of gaining competitive advantage over
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each other, both Coles and Woolworths Limited implement unique and advanced measures
(Goodyear, 2017).
Samsung Corporation is another multinational conglomerate with its headquarters in Seoul.
Company operates in various areas and in relation to this; organization is requires to adopt
various strategies through which they could attain competitive advantage in the particular area.
With the help of enterprise system, Samsung is being able to manage its operations in an
effective manner. Enterprise system has helped the organization in various ways such as
resolving grievances, resolving technical issues, etc. Apart from this, enterprise system also helps
the organization to make annual reports, financial statements, etc. with zero percent of error.
With the help of implementation of enterprise system by Samsung, growth of 25-30% has been
recognised. Ultimately, these measures become the major contributors for attaining competitive
advantage (Voronkova, et. al., 2017).
In relevance with the enterprise system, following strategies have been adopted by both the
companies in their value chain activities for the objective of gaining competitive advantage:
Cost Leadership
Cost leadership is the most effective strategy through which organization could easily attain
competitive advantage. This is adopted in order to reduce the cost of production as well as for
enhancing the revenues, sales and profitability. With regards to the cost leadership strategy,
organizations reduces their cost of production by adopting various measures such as waste
management, just in time manufacturing system, lean manufacturing, etc. Cutting unnecessary
cost is the measure objective of this strategy and this could easily be done with the help of
implementing enterprise system as it reduces requirement of human resources, generates less
waste along with high returns (Ali & Miller, 2017).
Coles (Supermarket)
Coles is one of the giant retail industrialists in the Australian retail industry and in order to
maintain its acquired position, organization requires adopting new measures on regular basis for
matching up with the latest trends of business environment. Coles and Woolworths are primary
rivals for each other and both implements new strategies for the objective of acquiring each
other’s market share. In relevance with this, Coles will be able to accomplish its set goals with
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the help of cost leadership strategy. This strategy will help the organization to gain new customer
segments along with retaining existing customers which will ultimately lead the organization to
gain adequate market share in the target market (Hunjra, Faisal and Gulshion, 2017). Along with
the enterprise system, cost leadership strategy will act as an essential and effective strategy for
the accomplishment of set goals. This will ultimately help the organization to attain competitive
advantage in the target market. Cost leadership strategy focuses on reduction in cost of
production, thus, it does not create any negative impact over the organizational performance. It
will help the organization to enhance its revenues, sales, profitability as well as customer base
(Waseem-Ul-Hameed, Ali & Arif, 2017).
Samsung (IT Industry)
Samsung always believes in innovation and creativity in order to enhance organizational
performance as well as to meet with the target customer’s demands and wants. With regards to
this, organization has focused towards cost leadership strategy. This strategy helps the
organization to set up its effective position in the global market along with gaining competitive
edge over its competitors such as Apple Inc., Xiaomi, etc. Apart from this, organization also
believes in strategic planning to implement the strategies so that positive outcomes could be
attained (Kurt & Zehir, 2016). With the help of enterprise system, organization has been able to
adopt unique and innovative strategies for making their products more efficient and effective.
When Samsung entered into mobile phone’s market, Nokia was leading the worldwide market
and in relation with this, organization faced failure many time but with the help of unique
measures, hard work and commitment towards gaining competitive edge, Samsung is one of the
leading smartphones’ manufacturers across the globe. Enterprise system along with cost
leadership strategy has helped the organization acquire the opportunities present in different parts
of the globe which has ultimately enhanced organizational performance in the global market.
Change management
This strategy is one of the crucial strategy through which organizational performance could be
improved. Every company should adopt this strategy in order to enhance the effectiveness and
efficiency of their products along with producing new and innovative products. Continuous
improvement and change management is the key to success for an organization (Wu, et. al.,
2017).
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Coles (Supermarket)
Coles is one of giant player of retail industry in Australian market. It is a subsidiary company of
Wesfarmers which is another big player of retail industry. In order to maintain its acquired image
in the target market, organization has adopted enterprise system in order to enhance the
effectiveness of their innovative and creative practices. Along with this, Coles is also planning to
differentiate their image from its competitors by effective strategic planning so that every task
could be accomplished in an effective and appropriate manner (Hayes, 2018). Organization is
using enterprise system for collecting their customer’s data on the basis of their purchasing
pattern so that their future demands could be fulfilled. Along with this, consistent learning is
helping the organization to make its products unique and efficient through which customer
satisfaction which ultimately helps the organization to uplift its performance along with
developing brand image in the target market (Mahmud, Ramayah & Kurnia, 2017).
Samsung (IT)
With the help of consistent learning strategy influenced by enterprise system, Samsung has
created an effective brand image amongst the target market. In order to provide new and unique
features, organization adopted enterprise system with regards to the fulfilment of target
audiences’ demands and wants. Apart from this, organization focuses on analysing its
competitors’ strategies, products and services so that the appropriate and relevant aspects could
be provided in order to enhance the effectiveness of their products in comparison to the
competitors. Samsung has adopted enterprise system in its value chain activities and organization
believes in strategic planning so that the plans made by organization could be executed in an
appropriate manner. This helps the organization to accomplish its desired goals and objectives
through which competitive advantage could easily be attained (Tan, Tan & San, 2018).
Overall development
Every company must focus on overall development rather focusing on only one department or
sector in order to enhance its performance. Teamwork, collaboration, etc. are certain terms which
are crucial as well as effective for an organization in relation with gaining competitive advantage
as well as in attaining set goals and objectives. Thus, it is required for the organization to focus
on overall development of the organization by adopting centric approach. Strategic planning is
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the primary approach through which overall development of the organization could easily be
done (Rezvani, Dong & Khosravi, 2017).
Coles (Supermarket)
In terms of overall development of organization, management has considered enterprise system
as one of the most effective measure and along with this, organization has also focused on
employee encouragement, customer feedback, interactive sessions, etc. as an important tools for
gathering relevant and crucial information with regards to improving organizational
performance. These attributes ultimately helps the organization to promote teamwork and
collaboration through which organization could easily attain its set goals.
Samsung (IT)
In order to grab target audience’s attention towards organizational products and services with the
objective of gaining large part of market share, overall development strategy has been considered
as the most effective strategy. In relevance to this, organization requires to focus on every sector
of the organization like from production to marketing and sales in order to attain set goals along
with enhancing customer satisfaction (Appelbaum, et. al., 2017).
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Conclusion
It has been concluded that organization should focus on growth and development as these are
one of the primary objectives for an organization in terms of gaining competitive advantage as
well as these are essential for sustaining for longer period of time in the market. With regards to
the enterprise system, organization is required to adopt unique and advanced strategies in order
to grow and sustain for longer period of time. In this report, enterprise system has been disused
with relevance to the functionalities of Coles and Samsung Corporation.
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References
Ali, M. And Miller, L., 2017. Erp System Implementation In Large Enterprises–A Systematic
Literature Review. Journal Of Enterprise Information Management, 30(4), Pp.666-692.
Alles, M., Brennan, G., Kogan, A. and Vasarhelyi, M.A., 2018. Continuous monitoring of
business process controls: A pilot implementation of a continuous auditing system at Siemens.
In Continuous Auditing: Theory and Application (pp. 219-246). Emerald Publishing Limited.
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting Information
Systems, 25, pp.29-44.
Goodyear, M., 2017. Enterprise System Architectures: Building Client Server and Web Based
Systems. CRC press.
Hayes, J., 2018. The theory and practice of change management. Routledge.
Hunjra, A.I., Faisal, F. and Gulshion, F., 2017. The Impact of Cost Leadership Strategy and
Financial Management Control System on Organizational Performance: An Empirical
Investigation of Pakistani Service Sector.
Kurt, A. and Zehir, C., 2016. The relationship between cost leadership strategy, total quality
management applications and financial performance.
Mahmud, I., Ramayah, T. and Kurnia, S., 2017. To use or not to use: Modelling end user
grumbling as user resistance in pre-implementation stage of enterprise resource planning
system. Information Systems, 69, pp.164-179.
Rezvani, A., Dong, L. and Khosravi, P., 2017. Promoting the continuing usage of strategic
information systems: The role of supervisory leadership in the successful implementation of
enterprise systems. International Journal of Information Management, 37(5), pp.417-430.
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Sharma, S. And Sykes, T.A., 2018. Goal Orientations And Their Impacts On Advice Ties And
Employee Outcomes: A Longitudinal Field Study of an Enterprise System Implementation.
Tan, B., Tan, F.T.C. and Sun, Y., 2018. Social Shaping Leadership in Enterprise System
Acquisition and Development: The Influence of Reference Users in Xizi Holdings. Journal of
Information Technology Theory and Application (JITTA), 19(2), p.8.
Voronkova, O.V., Kurochkina, A.A., Firova, I.P. And Bikezina, T.V., 2017. Implementation Of
An Information Management System For Industrial Enterprise Resource Planning. Revista
Espacios, 38(49).
Waseem-Ul-Hameed, F.H., Ali, M. And Arif, M., 2017. Enterprise Risk Management (ERM)
System: Implementation Problem and Role of Audit Effectiveness in Malaysian Firms. Asian
Journal of Multidisciplinary Studies, 5, p.11.
Wu, C.H., Chiu, R.K., Yeh, H.M. and Wang, D.W., 2017. Implementation of a cloud-based
electronic medical record exchange system in compliance with the integrating healthcare
enterprise’s cross-enterprise document sharing integration profile. International journal of
medical informatics, 107, pp.30-39.
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