Table of Content

Effective use of IS and business strategies in Vinytallac

From the very beginning of Vinytallac`s business, it was hard enough to compete against competitors since this business was in perfect competition. As we clearly define characteristics of perfect competition which are supposed to be free entrance, product is not differentiated, firm is price taker. Step by step Vinytallac started to implement new systems or methods to cope with those obstacles. In the market of music supplying, there were competition from other companies and also illegal sellers. Vinytallac hired several employees who handle with technical staff in terms of website and both product and supplier databases. Even though Vinytallac has expanded its shares, it was also facing great rivalry from big supermarkets and national suppliers. In this case , so as to manage the price of suppliers , Mark`s wife Gloria was scanning the databases of suppliers with the help of three clerks to get products at the lowest price in the market. Another advantage of Vinytallac was online purchasing where customer can easily find their favorite music and order them. One of the major weaknesses of Vinytallac was that Mark was not using customer information to find out the favors or their purchasing habits. As a result of it, this firm has gradually slowed down its business. One of the main competitive advantage of it was search service if customers cannot recall the name of music instead they can type when music was popular or who acted in this music. This kind of service was really demanding in this market, for this reason partner of Mark, Gregory offered to hire teleworkers to cope with this side of the business. Facilities in Vinytallac for small sized company were up to date, latest PCs, standard office systems and database management system. Mark was planning to publish monthly magazine, it included different sections like commenting section, news items. Vinytallac was also demanding from overseas, it supplied also music for these clients. However, sometimes packaging was much higher than the price of order.