8/12/2019 Tahira Report

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It has been agreed by e.management commentators that sustainability of operational advantages are

getting differcult by widespread usage of internet. They argued that traditional avenues for

differentiating value propositions to consumers through more extensive offerings which emphasizes

product charecteristics,customer service,modes of payment,return policies,are being reduced or

destroyed by internet.It happens because strategies for differentiation are readily responded by

competitors and as aresult 'commoditization' occurs.This raises the question about the longevity of

differentiated strategies on the internet.

However other commentators argued that commoditization of products are services by competing firms

don't necessarily reduce the ability of a firm to differentiate its offerings. There logic internet

technologies provide firms a source of novel 'sustainable operational efficiencies'. It leads to the

commoditization of previously differentiated products as well as allows dedifferentiation of the product

by enhancing product quality to customer.

Providing proper customer service can come up next as the second measure of differentiation .for

example , internet merchants' encourage the customer to make price offers on products and promote

haggling.

Over the last three decades, it is getting more difficult to offer a distinct product as firms have become

more alike in their attempts' to offer a distinct products. The focus is on providing customer service in

the most appropriate way.

Organizational excellence can only be obtained by combining both differentiated internal process and

organizational controls.

Redefining organizational structure to enable product market specificity is necessary strategy for

enterprises because it has become a means of delivery a product that rapidly shifts from beingdifferentiated to becoming replicated standard form.

Differentiated enterprise structuring needs to be reflected in the management of firms producing

initially different, but ultimately standard products. It's suggests that strategies should be adopted

regarding both products and organizational structuring and technological reason.

The costs of using market to carry out economics activity as an important determinant whether

companies have an incentive to vertically integrate. This trend leads to 'value added communities'

whereby organization outsource and make greater investment.

Firms can join forces to create products that cannot be replicated by competitors. such alliances takedifferent forms including joint venture strategic partnerships, extended collaborative relationships.