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Information System Strategies for Dealing with Competitive Forces Low- Cost Leadership Use information systems to achieve the lowest operational costs and the lowest prices. The classic example is Wal- Mart. By keeping prices low and shelves well stocked using a legendary inventory replenishment systems. Because the system replenishes inventory with lightning speed, Wal- Mart does not need to spend much money on maintaining large inventories of goods in its own warehouses.

Product Differentiation Use information systems to enables new products and services, or greatly change the customer convenience in using your existing products and services.