Advantage Of Knowledge Management

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1.1 Knowledge management is the way to manage the information and resources efficiently in an organisation. It helps the organisation to create value and meet strategic requirements. It is the process of identify, capturing, evaluating, distributing and sharing of an organisation’s information assets to enhance its performance and competitiveness. Knowledge management can help to minimize the costs of the organisation. If they know that what to do with the existing knowledge, it will definitely reduce the costs. Furthermore, knowledge management can enable the organisation to know well the needs of the environment such as stakeholder and the industry. Knowing their needs is an important task for an organisation and it has an obvious immediate…show more content…
Knowledge management strategy cannot be achieved without a trusting knowledge culture that emphasizes the role and values of knowledge in daily business decisions. Furthermore, CMP can train and empower the knowledge workers. Knowledge is basically originates from its knowledge workers. Thus empowering and supporting knowledge workers that ensure them to be a key component of the knowledge management system. It is one of the ways that the company’s knowledge management strategy can be successfully (Fareed & Caro & M.Asif 2004). The employees need to be train in order that they can documented well of the operational information so that can easily understand it when someone review the operational…show more content…
The rivalry is high when there is large number of firms and the competition for the same customers and product resources will be increase. The competition will be even much fierce when industry competitors are equal in size and power. They compete for market dominance. Furthermore, the slowed industry growth will cause the competition to be increase to gain market share. The higher the firms’ fixed cost, the firm will compete to increase the profit to cover the fixed costs. For CMP, there are more similar firms within an industry will lead to the higher the rivalry among existing competitors of CMP. The threat of new entrants is high when the new competitors are easy to enter to a market while low when there are significant entry barriers. The entry barrier blocks the ability of a firm to enter an industry. The large capital investment per unit of output in facilities tends to limit industry entry. Besides that, the other barrier to entry is that the need for a large volume of production and sales to reach the cost level per unit of production for profitability (Don 2013). Industries dominated by branded products are hard to enter because of the large amount of time and money required to create a competing branded product (Don 2013). The threat of substitute products is that the other alternative products that the
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