This website uses cookies to ensure you have the best experience. Learn more

Strategies Essay

2641 words - 11 pages

1. Consumption economics – how does this alter the process of resource allocation in developing strategy?

We studied how three factors indelibly altered the IT infrastructure landscape in the “Consumption Economics” module, and the lasting impact on the way that customers approach purchasing and using IT. During that lecture, several rhetorical questions were posed about how this new model of consumption would alter the process of product development. The questions are no longer rhetorical. Looking at the model of consumption economics, and using other models from throughout the course (Five/Nine Forces, etc.), discuss how an IT infrastructure firm can gain and hold competitive advantage in this environment, and whether it is different from how to establish and maintain competitive advantage in a traditional, product based model.


The three things, namely, cloud computing, consumerization of IT and the downturn of global economy have questioned the basic business model under which the tech-based companies have been operating and making profits until now. The disruption that the cloud is bringing in, can either help deliver the full potential of technology or on the other side it could accelerate the commoditization of technology - all depending on how the companies reinvent their business framework.

Earlier, the IT infrastructure companies used to make profit through a product based model which included setting up of infrastructure, implementation and integration of their product into customers’ existing system. And till this stage, it would already have cost the customers 70% of their total budget for the implementation of the new technology. And by the time customers get fairly acquainted with the newly installed technology, there is a newer version of the technology out in the market. This creation of the newer version of technology (hence increasing the complexity for the end users), is a consequence of the two factors. Firstly, the increasing competition which ultimately forces everybody to cut down the prices and thereby reducing margins and secondly, the need to create a differentiating product so as to stand out from competitors. This traditional approach is clearly shown in the complexity model and with the result of increasing the consumption gap, which is, the difference in rate at which technology is created and rate at which it is consumed by the consumers. These huge costs which customers pay upfront for the technology that they may not even use entirely, has created a need for a different model. The increase of consumption of technologies over the cloud and through micro-transactions are forcing tech companies to abandon their earlier approach of product based complexity model and change to service based consumption model.  
Analysis of IT infrastructure Industry through Porter’s five forces

Market Forces Scale of Impact Points Considered
Threat of new Entrants Low High capital requirements, low product...

Find Another Essay On strategies

Negotiation Strategies Essay

1163 words - 5 pages Introduction Negotiating is a big part of our everyday lives, both on a personal level and a professional level and can be seen in the competitive marketplace. Negotiating is used to deal with the purchasing of goods and services, dealing with individuals, personal relationships, and written contracts between individuals and businesses. Each individual has a different way of negotiating and use many types of strategies. This paper

Instructional Strategies Essay

1714 words - 7 pages A teacher’s responsibilities are to ensure that every student gets the education that they deserve from a well-structured curriculum and materials. Within the teacher’s responsibilities a strong foundation of instruction has to be implemented, this is why instructional strategies are significant in a teacher’s career. The strategies for instruction vary from teacher to teacher; as a result there are no specific ways to employ strategies within

Renewal Strategies

2031 words - 8 pages The idea that renewal strategies, like redundancy and restructuring, are necessary to achieve organisational goals comes from a supply and demand analysis of the job market. However Today’s working environment is seen to be excessively using these strategies in order to accomplish short term goals, resulting in businesses not looking towards their long term futures. This essay will address this issue by looking at the significance and

Learning Strategies

1988 words - 8 pages TITLE: Learning Strategies INTRODUCTION: What is learning? According to the New Merriam-Webster Dictionary, learning is the act of knowledge and understanding by studying and experience. Learning is not always boring there are many things that can be incorporated into a classroom to make learning fun. As teachers, we must keep in mind that all our students are different and they all think and learn in different ways. A lot or research has been

Reading Strategies

8487 words - 34 pages and also the problems vary according to different departments, classrooms, courses and so on."You need to think about how your learning style interacts with the text you are reading, and perhaps change your reading strategies to meet the challenges of that text"(King,2008). Good readers are extremely active as they read, as is apparent whenever excellent adult readers are asked to think aloud as they go through text" (Pressley & Afflerbach

Ethical Strategies

1711 words - 7 pages called “Globalization”. Managers are accepting managerial positions in order to run headquarters in a foreign country. But how sure are we, that an individual has a full knowledge of the cultural environment of the host country. Mistakes, misunderstood line procedures within a company may lead to controversial marketing strategies that may affect seriously others people lives. Multinational corporations are implementing strategies to avoid any

Marketing Strategies

1349 words - 5 pages outside provider, so that the business can focus on their core competencies. ( Environmental scanning, understanding the businesses target market and examining the external environment, also, is integral to determine business opportunities and threats. To remain in existence, a business must be prepared to change their business strategies. This external environment

Branding Strategies

555 words - 2 pages with my child having to wake up with her bed wet, I decided to try Luvs. They have an amazing ability to hold wetness like I抳e never seen before. My child can go to bed and stay sleep for ten hours. Her diaper will weigh about five pounds when she awakes, but it will not leak. Luvs also have something in it that keeps the moisture away from her skin, this helps with diaper rashes.Luvs have used many strategies over the years to captivate

marketing strategies

579 words - 2 pages ) or market development (selling existing products to new target markets). These marketing goals could be long-term and might take a few years to successfully achieve. However, they should be clear and measurable and have time frames for achievement.Make sure your overall strategies are also practical and measurable. A good marketing strategy will not be changed every year, but revised when your strategies have been achieved or your marketing goals

Questioning Strategies

1335 words - 6 pages Introduction I chose to focus on how the use of questioning strategies in a whole class setting improves student understanding of conic sections because I struggle with using open-ended questioning. I see how “yes” and “no” questions do not usually cause students to think, since the answer to the question is often in the question. However, from my own experience as a teacher, simply asking an open-ended question about a new topic can cause

Outmoded Strategies

853 words - 4 pages would lead to “excessive profits.” He did not practice the first true rule of business, always knowing your customer. The Five Forces theory does not work in 21st Century because it fails to create competitive advantage for a company. In the 1950’s, the time where Porter was observing business strategies, there was less government intervention, a few large companies that formed the oligopoly market, and less globalization and technology. It is

Similar Essays

Strategies Essay

2335 words - 10 pages Globalization: Globalization can be seen as reduction in barriers between countries. Globalization has opened the world market for international trade. The movement of globalization have contributed to the spread of knowledge, culture, technology, and information across borders. The increasing role international expansion across border has also increased the focus of multinational corporations to international business strategies

Learning Strategies Essay

1721 words - 7 pages suburban catholic school located outside of Philadelphia. Students represent many races, all follow the Christian religion. Learning Environment: The environment in which strategies were brought out was located in a comfortable classroom environment for the learner before school, after school, and during teacher prep periods. E was immersed in literature and demonstrated by the teacher, E learned different strategies of comprehension and fluency. The

Reading Strategies Essay

1086 words - 5 pages Topic and Problem Topic Many students in middle school have difficulty comprehending material they read from the science textbook. The students are unfamiliar with the text features in the science textbook and do not know how to use them appropriately. The students also lack expository reading strategies to comprehend expository text. It is vital for students to be able to read and comprehend the science textbook independently to be

Reading Strategies Essay

608 words - 2 pages Good reading strategies help you to read in a very efficient way. Using them, you will get the most benefit from your reading. Today I would like to compare my friend's reading strategies and my reading strategies.Kam is my college classmate. She likes to read. She likes nonfiction books and didactic books which can teach you a lesson. Psychology books and sociology books are her favorites because they teach you how people think and how our