Competitive Advantage Through Alliances

With the increase of Chinese economy stirred by the information technology, the scale of software industry is expanding, the demand of market is boosting, but the competition is more dramatically. Facing to the opportunity and challenge, Baosight Software Company has made a decision to be the first-class software company in China.Firstly, this paper describes the global software industry and domestic software industry. According the target markets focused by Baosight, then this paper analyzes the competitive environment of these industry markets. According the theory of Value Chain, the characters of software industry chain are the division of labor and cooperation, which is the outputs of the value chain analysis about software company and software industry. There are typical core company and node company in software industry, just like the components in value net. The competitive advantage of Baosight is its whole business chain: Product- Engineer- Service. Through the value chain analysis of three business, the paper gives the corresponding competitive strategies: technology, marketing, industry knowledge and cooperation. Finally, the paper gives the point of Strategic Alliance. To improve the Competitive advantage, Baosight must build the Strategic Alliance with multinationals. There are two cases of the Strategic Alliance in Baosight: one is with Microsoft, another is with Hitachi Limited.