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E-Business - Information Systems

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Submitted By chuaweiyi
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Introduction
The STAR organization has only done business locally in Leeds in the United Kingdom, and seeks to expand its business on a global scale. To make this happen, STAR would require developing a competitive strategy which in due course helps the organization in achieving a competitive advantage. This report will touch on how an information system can greatly benefit STAR in terms of global expansion and change the dynamics of running businesses efficiently, as well as the impact of having it. Without a doubt, any new implementations to any organization will have its advantages and disadvantages, but the latter can be kept to the minimum, or even eliminated, if appropriately dealt with.

1 – Potential of IT systems
The Ansoff Growth Matrix is a marketing planning tool which aids a business in defining its product and market growth strategy. As shown below (Fig 1.1), market development is the name given to a growth strategy where the STAR organization seeks growth by targeting its existing products to new market segments (QuickMBA, undated).

Fig 1.1 – Ansoff product/market growth matrix (taken from http://www.tutor2u.net/business/strategy/ansoff_matrix.htm)

The major goal of market development is to attract a new customer segment, using a slightly different strategy, into consuming an existing product (Ansoff, 1984, p455). According to Riley (2012), various market development strategies include; * New distribution channels i.e. changing the way how STAR sells the product * Pursuit of additional market segments or geographical regions, such as exporting the product to a new country * Utilizing of different product dimensions * Adoption of different pricing strategies
As for STAR, I will recommend the first two strategies, because STAR is more suitable to approach the new market with them. More will be

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