A Norway based online start up of news, Nettavisen had experienced an increase after the significant financial crisis in the year of 2009. They were able to increment the market shares and profits by utilization of few highly disruptive organizational models and also enabling relatively lesser employee to outcompete the power house legacy publishing organizations as well as new media-players like Google and Facebook.
1. Main Competitive Advantages Nettavisen holds over Legacy News Publishers and New Media Players like Facebook and Google in the Norwegian Market
Nettavisen was competing against the larger obligatory publishing firms within a rapidly developing market for the publication of online news. They are able to increment the market share and profitability by using highly disruptive business models, which enable them to outcompete the power house legacy publishing companies (Weill and Aral 2006). During the earlier days of this online survey, the older news organizations felt that the brands were extremely highly established and hence they can try-out with the newer digital platforms at own speed. Nettavisen was able to put them wrong by establishing the most notable online news website in only few years. This type of early success eventually differentiated them from competition.
In 1996, the organization was completely an online start-up and by 2008, the business models were changed for this company (Barney & Hesterly 2012). In the year of 2014, it was announced that Nettavisen has been moving towards DDBM, in which the user buying patterns are extremely vital. It was acquired by several significant organizations of Sweden and Germany until in 2008, it was separated from TV2. After being separated from TV2, Nettavisen again became purely an online newspaper service.
The major competitive advantages that Nettavisen holds over the legacy news publishers and new media players like Facebook and Google within the respective Norwegian market are as follows:
iii) Freedom of Publishing News: This is yet another important and noteworthy competitive advantage that Nettavisen has over others. They can publish those news what has happened, however the newspaper publishers have to think about what news should be kept for their printed products of next day (Meise et al. 2014). As per the manager of Nettavisen, they only have one agenda of sharing correct news on time and they are utilizing the Internet as a medium or an electronic paper. Due to this particular competitive advantage, it is possible for them to manage the news and share them with their clients easily and effectively.
2. Combination of Major Concepts and Principles of RBV or Resource Based View of the Firm and IT Portfolio Theory for Assessment and Explanation of its Competitive Advantages in a Disruptive Turbulent Market
Resource based view or RBV can be referred to as the managerial framework that is being utilized for determining the strategic resources with the core potential of delivering comparative advantages to the firm. These resources could even be exploited by the respective firm for achieving sustainable competitive advantages (Stair and Reynolds 2013). This RBV focuses on the managerial attention over the internal resources of the firm with an effort to recognize the asset, capability and competency with the significant potential of delivering greater competitive advantages. Nettavisen in the Norwegian market has some of the core and significant competitive advantages over others. Since, the entire Norwegian market of news publishers is in an extremely turbulent and they have been acquired by two significant organizations of Spray and TV2 and finally in 2008, it was separated from TV2. This did not create an issue for Nettavisen rather they obtained major competitive advantages (Rainer et al. 2013). The RBV of Nettavisen included three distinctive tasks, which are as follows:
iii) Developing, Nurturing and Protecting Resources: The final step is developing and protecting these resources or assets. With the new business model of DDBM, they are able to protect their resources effectively.
Hence, Nettavisen is able to implement the value creating strategy even in the turbulent Norwegian market. The concepts of IT portfolio theory can also be involved for properly assessing and explaining the competitive advantages of Nettavisen within a disruptive turbulent market. The information system has been helpful to them for maintaining innovation and creativity. This information system is being utilized by an organization for helping the individuals to interact in support of business processes (Stair and Reynolds 2013). The various operations of information like collection, processing, storing and even distribution is possible with the help of this system. Information system is also helpful for providing several competitive advantages to the organization and hence eradicating the major issues and complexities faced here. Moreover, the availability of information and cost effectiveness are the next significant advantages that Nettavisen has obtained.
Value of information ca be referred to the amount that any decision maker eventually considers and have the willing to pay for information before making the respective decision. It is extremely for any organization since it helps in generation of business value and thus helping the firm’s overall competitiveness with the help of information technology. This value of information is completely related to the significant value of decision making after being supported by the organizational information (Petter, DeLone and McLean 2013). The IT portfolio manager of this organization manage the portfolio of their regular news and even plan for the latest updates. The principles of IT portfolio theory that has allowed Nettavisen to obtain their competitive advantages are as follows:
iii) Managing Data Confidently:
Conclusion
Therefore, from the above discussion, it can be concluded that information system is extremely and significant for understanding as well as generating the value of business within the organization. Moreover, overall performances are increased for each and every department of the business. The above report has clearly outlined the detailed description on the case study of Nettavisen and its gaining of competitive advantages by combining RBV and IT portfolio theories.
References
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Meise, J.N., Rudolph, T., Kenning, P. and Phillips, D.M., 2014. Feed them facts: Value perceptions and consumer use of sustainability-related product information. Journal of Retailing and Consumer Services, 21(4), pp.510-519.
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Petter, S., DeLone, W. and McLean, E.R., 2013. Information systems success: The quest for the independent variables. Journal of Management Information Systems, 29(4), pp.7-62.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., 2013. Introduction to information systems. John Wiley & Sons.
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