Management Information Systems - Essay Example

Cost leadership and Differentiation focus strategy will be discussed with examples in the following section. Wal-Mart stores have successfully expanded their operations across many countries with a cost leadership strategy by gaining a competitive advantage through under-pricing products while maintaining a decent profit margin; thanks to savings from lower costs that allow Wal-Mart to transfer savings to customers. Starbucks Corporation currently employs the differential focus strategy and caters to a specific target consumer segment with unique and distinguished products. Selling a unique line of coffee and tea products to high-end customers at a high cost gives it a competitive advantage. It doesn’t aggressively market itself but the attention to detail, product quality, impeccable customer service, and ethical practices have helped position the organization as “one of the most valuable global brands”.

Wal-Mart currently has a management information system that helps store and share information from and for its worldwide operations. It uses the point-of-sale system to record all the sales information and telecommunication to connect with its stores worldwide to maintain stocks. Starbucks has an advanced information system in place to collaborate worldwide operations, especially focusing on direct coordination among finance, purchase, sales and marketing, and human resource department. However, both the firms need to extensively focus on information security and customer profiles in order to avoid potential security breaches and information misuse to ensure sustained success and growth.