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Table of Contents Grow Your Business vs. Destroy Your Business Cannibalization Aligning Information Systems and Business Strategies Social IT for Aligning IS and Business Strategies References Grow Your Business vs. Destroy Your Business Both Grow Your Business (GYB) and Destroy Your Business (DYB) strategies are essential for companies to understand if they plan to remain in a competitive market long-term. The DYB strategy implies the assessment and evaluation of products offered in terms of their design and price. In essence, the strategy is necessary for identifying existing flaws and, therefore, examining the advantages and disadvantages of a company’s position with regards to whether or not it can sustain its profitability long-term. However, the technique is quite disruptive to business activities because all stages of operation are subjected to scrutiny. Nevertheless, DYB remains a powerful tool that companies can use to realize their faults before it is too late. If comparing DYB with GYB, the latter implies a company uses the information gathered from product evaluations and employs it for introducing various business enhancing practices, while the former cannot recommend any specific actions for improvement. An interesting point to mention is that the GYB strategy capitalizes on relationships with customers through developing a new client base while nurturing the one that already exists. In terms of profitability, staying competitive against rivals, and sustaining the business long-term, both strategies ensure that businesses know their strengths and use them accordingly. However, the DYB strategy is more useful because it encourages companies to identify their weaknesses, stay focused on their achievements, and make any necessary changes in cases when there are significant limitations in their performance. Cannibalization Market cannibalization refers to the adverse impact that a new product introduced by a company has on the performance and sales of already existing products. In this case, a new product “eats” or “cannibalizes” the demand for other products, thus negatively affecting the overall sales of a company, as well as influencing the market share. When a business introduces a product, the demand for which is higher than for any others by the same brand, the bottom line can be drastically affected if this is done unintentionally. With the negative aspect of cannibalization, products’ lives end prematurely due to the shift in demand for a new product. However, there are instances when cannibalization is done intentionally and therefore can have a positive impact on a market share of a business. The cannibalization strategy may facilitate the capturing of a large market share that has previously been occupied by a competitor. In comparing cannibalization to the DYB strategy, it is hard to identify which one is better because companies may find themselves in different situations. While both strategies will allow businesses to build future success on past success, the cannibalization strategy is superior because it can be controlled more efficiently. The first example of cannibalization offers a positive look at the strategy. Apple, Inc. as a company is a bright example of this strategy, which predominantly brings positive results. When Apple releases a new iPhone, iPad, Apple Watch, or MacBook, it expects that the sales of older versions of the mentioned products drop because the company made the newer ones better and more advanced intentionally (“Market cannibalization,” 2018). In some cases when newer Apple products are extremely superior to outdated versions that are reaching their maturity, the share is captured. The second example of business cannibalization shows that the strategy can often be improperly implemented. The introduction of Amazon Kindle as an alternative way for customers to buy and read books has drastically affected the brick and mortar business (Rankin, 2015). Since the company sells print books on Amazon.com, selling e-books is counterproductive, and despite increasing the overall demand for book reading, the company contributed to the decline in print book sales (Li, 2013). The implications of this move are different. For instance, publishers have started setting higher prices on ebooks to account for the fact that print versions are not bought as often. Get your 100% original paper on any topic done in as little as 3 hours Learn More Aligning Information Systems and Business Strategies Changes in business strategies usually entail the reevaluation of information systems (IS). The main reason for doing so is to ensure that IS goes hand-in-hand with the new strategy. On the other hand, with the new advancements in IS, business strategies should also be reviewed for determining whether any of the long-term impacts harm a companies’ operation. For instance, when the market for smartphones began to advance quickly and led to significant changes on a global scale, every business was forced to reassess the way they use IS. Since the influence of smartphones on modern business is extremely large, those companies that overlook the trend and continue using dated IS tend to perform worse than their competitors. Another reason for aligning business strategies and IS refers to the adequate use of social information technologies that companies use regularly. When a business changes its strategy, or rebrands, social IS are key vehicles that can aid in communicating this change to its potential customers (Pearlson
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