TUI Deutschland Uses Information Systems to Gain a Competitive Advantage To succ
ID: 3787747 • Letter: T
Question
TUI Deutschland Uses Information Systems to Gain a Competitive Advantage To succeed, a business needs an edge over its competitors: a competitive advantage. A big part of creating a competitive advantage is using information systems effectively, meaning a business can't simply buy computers and expect good results. As Oscar Berg puts it in his blog The Content Economy, "What lcreatesl competitive advantage is how we use technologies, how we let them affect our practices and behaviors If technologies are carefully selected and applied, they can help to create competitive advantage." This chapter discusses the five forces that define any competitive situation: rivalry among existing firms in an industry, the threats of new competitors and of substitute products services, and a firm's relationships with suppliers and customers. Firms use these forces to achieve a sustainable competitive advantage, which is one that others cannot copy immediately to eliminate the edge an innovator can have. TUI Deutschland is Germany's leading tour operator Targeted pricing is vital in its market, with the travel company that sets prices to accommodate customers preferences and habits gaining a competitive advantage. For a large tour operator like TUI, setting optimal prices is not easy. Each season, the employee responsible for a particular tour must set around 100,000 prices for each destination region. The factors that affect the final price of hotel rooms. for example, include facilities, types of rooms, arrival dates, and expected demand "In the past, decision-making processes were not clear," explains Matthias Wunderlich, head of Business Intelligence at TUI Deutschland GmbH. "There were too many gaps in e system, since the information needed to make pricing decisions was hidden in different places. The resultExplanation / Answer
a. The company uses Property management systems to deliver the supply side and Human resource management system which provides good employee relationship .
b. Information systems are important for the company because they provide valuable feedback from value added processes, they integrate the technologies with the company system for efficient process to be performed.The functionalities included are Planning , Organizing , Directing and controlling .
c. Customer relationship management system will assist the company in its organizational goals. It will provide effective rise in customers and assures quality management .
d. The organization will require regular interactions with customers to get their feedback's which will be provided by the functionalities like relationship mangement, by technology use and by opportunities management.
e. The factors faced by competitive forces by company are , Rivalry withe existing firms , Threats from new competitors , Substitute of products or services , Relationship with suppliers and relationship with customers.
To gain the competitive advantage from CRM the organization can customize the services for its repeated customers , it can give corporate discounts , and also can provide referral system.
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