Week 4 - Strategic Alliance Model

Source / Reference:

1)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210

2)  “H&M Apps for iOS”, http://itunes.apple.com/us/app/h-m/id380487409?mt=8

Subject: 
In Lect 4 - Which alignment strategy in SAM model is the best? and why?

Response:

I think the best alignment strategy is "Service Level" approach in which the performance of the strategy is measured by customer satisfaction.

It is because strategic alignment model of "Service Level" approach can provide additional IT services to stimulate customer satisfaction to the company. IT development is changing rapidly, if the company can identify newest IT trend and develop IT strategy, it can deliver superior, value-added service to retain and acquire customers. 

H&M is an international clothing retailer and it has explored the possibilities of IT strategy to provide IT services. For example, as using smart phone has high popularity and phone apps development is new trend for business enterprise, so H&M has developed apps for iOS and Android. The apps enables user to receive the latest promotions, share items to friends through facebook, twitter and much more functions. Therefore, the apps can provide a way for products promotion and brand advertisement. Even though the apps cannot generate profits directly, this new advertising method can introduce products to potential customers efficiently and stimulate their demand of goods. Hence, profits can be generated indirectly and the company can maintain competitive advantage. 


As many enterprise in Hong Kong facing threats from competitors and opportunities from IT services, just like case of H&M. Therefore, it is important for an enterprise to provide IT services to serve their customers in order to boost demand of goods and services in the company. To achieve the goal of making profits, strategic alignment model of "Service Level" approach is suggested to be adopted.