Management Information Systems in Retail Chain

Subject: Management
Pages: 3
Words: 588
Reading time:
3 min
Study level: College


Information technology can change the business structure and give an organisation an upper hand in business. IT alters business formation and thus, modifies the market rivalry guidelines. Besides, information technology gives corporations innovative and techniques to outdo market or business competitors. Information technology can spawn new businesses from within a company’s’ existing operations (Laudon and Laudon 22).

A retail chain that has a number of outlets may use information technology to outdo their competitors in many ways. For example, by automating steps that were manual including creating the clients check out system. Such a system allows corporations to check the items in their carts automatically instead of the cashier keying in an item at a time. As a result, the IT systems give an advantage to companies that are eager to learn new strategies for doing business.

The retail company may decide to create a completely new process for cross checking the prices of items on the shelves and those of their competitors by using technological programs and software. The system will enable their customers to be informed and get better deals on items. It will also help them to make informed decisions instead of doing the checking manually. The company can create an online shop where customers can buy and do not necessarily have to come to the shop.

Transaction Processing Systems (TPS)

They record and transact daily habitual events that are compulsory to conduct business. In the retail price, they can be used to check out the customers check out with the database prices within a very short time hence making the check out faster and very efficient. The TPS allows business administrators to observe the operational position of a business and compare it to other retail stores and branches.

Management Information Systems

The systems serve the central administration by providing information on the firms’ present productivity. They will offer responses to the predictable queries and the prescribed process used to respond to them in the organisation. It will provide information to the retail management on an exception basis.

Porters’ Competitive Forces and Value Chain Model

Porters’ theory argues that success or failure of a company relies on the ability to respond to its external environment. Firms share the market with competitors who are constantly devising ways to stay afloat and steal their customers. New companies have new equipment and workers and can easily jump in the market and produce cheaper and new goods to your customers (Laudon and Laudon 22). Using this knowledge, the organisation can be able to hire new workers and stay abreast with the current production trends.

By using information systems to lower the retail companies’ operational costs, they can lower their price and attract more customers. The company can engage in product differentiation by enabling new products in the market that their competitors are yet to acquire. The company should utilize the information system to strengthen and market its brand to clients and dealers. By giving customers loyalty cards that they can redeem for items, it creates the attachment to the business.


The retail business should be able to maintain and sustain competition. Given that competitors can copy the strategy, staying ahead is not always possible. However, every manager’s success is always attributed to the ability to adapt to change. With the advancement in technology, the organisation should make system changes to ensure that they are in accord with the current market trends in order to have an edge in business and stay ahead in the currently competitive market.

Works Cited

Laudon, Kenneth and Jane Laudon. Management Information Systems: Managing the Digital Firm. Upper Saddle River, NJ: Pearson Prentice Hall, 2010. Print.