Information Technology Sub-sector Analysis Essay

Information Technology Sub-sector Analysis - Essay Example Porters four analysis gives two dimensions that define the strategies. One is the competitive advantage source, and two is the scope of the advantage. The first one comprises of product differentiation or low-cost approach. The second one consists of narrow or broad approach. When crossed the dimensions gives the porters four business strategies. To win competitive advantage, the IT organization should apply cost focus in a small group of the target section. A Cost Focus strategy usually emerges as a competitive move, at times to challenge a certain competitor. A smaller IT firm can as well gain entry to a market by competing on cost within a particular niche. Competition in the mobile application industry has lead to the rise in a totally new product called smartphones that have greater functionality as compared to normal mobile phones due to their capability of running mobile apps. The cost of these smartphones is not over exaggerated to discourage the customers from buying them. The IT organizations maintain lesser cost across different product offerings. An analysis of competitors cost should be carried out prior to setting products costs. For instance, by 2010, the mobile apps industry was highly flooded as new competitors got into the market saturating it with several varieties of utilitarian and lifestyle apps (Tarnacha & Maitland, 2006). In most instances, apps are designed by third-party developers like companies that wish to advertize their products, or by freelance designers who trade their apps at a profit. The major operating systems, Android and Apple, each have an equivalent dedicated marketplace due to its subsidized costs. Limiting Apple policies with regards to app development in the preliminary stage have had a verifiable effect on the iOS apps market. A larger percentage of all mobile app developers have a preference for developing apps for the Android operating system whereas a smaller percentage prefer to do so for Apple’s iOS