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Q3-7 How Do Information Systems Provide
Competitive Advantages?

In your business strategy class, you will study the Porter models in greater detail than we have
discussed here. When you do so, you will learn numerous ways that organizations respond to the
five competitive forces. For our purposes, we can distill those ways into the list of principles shown
in Figure 3-12. Keep in mind that we are applying these principles in the context of the organiza-
You can also apply these principles
to your personal competitive tion’s competitive strategy.
advantage, as discussed in the Guide Some of these competitive techniques are created via products and services, and some are
on pages 138–139. created via the development of business processes. Consider each.

Competitive Advantage via Products

The first three principles in Figure 3-12 concern products or services. Organizations gain a com-
petitive advantage by creating new products or services, by enhancing existing products or services,
and by differentiating their products and services from those of their competitors.

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