One way for companies to improve their effectiveness and efficiency is by incorporating Information Technology into their business practices. The new and constantly developing technology is allowing businesses to accomplish things that they would have never thought possible just a few years ago. This journal will explore some of the ways a company can use Information Technology to create strategic advantages . Strategic advantage grows fundamentally out of the value a firm is able to create for its buyers. It may take the form of prices lower than competitors' for equivalent benefits or the provision of unique benefits that more than offset a premium price.
Strategic advantage is at the heart of a firm's performance in competitive markets.
After several decades of vigorous expansion and prosperity, many firms have lost sight of strategic advanatage in their scramble for growth and pursuit of diversification. Michael E. Porter, Harvard Business School professor, states that the fundamental basis for achieving and maintaining above average profitability over the long run is sustainable strategic advantage. Their model is based on the identification of five strategic thrust areas where the company can make a major offensive or defensive competitive move. Achieve an advantage by distinguishing your products and services from those of your competitors. Achieve an advantage by introducing a product or process change that results in a fundamental transformation in the way business is conducted in the industry.