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Unformatted text preview: Chapter 2 Notes Strategy and strategic moves Strategic information systems (SISs) - are information systems that help seize opportunities. A company achieves strategic advantage by using strategy to maximize its strengths, resulting in a competitive advantage . Achieving a competitive advantage- A for profit company achieves competitive advantage when its profits increase significantly, most commonly through increased market share. Figure 2.1 Initiative Benefit Reduce costs A company can gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin. Raise barriers to Market entrants A company can gain advantage if it deters potential entrants into the market, enjoying less competition and more market potential. Establish high switching cost A company can gain advantage if it creates high switching costs, making it economically...
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- Spring '07