Information systems support this strategy by producing and analyzing data for finely tuned sales and marketing techniques. Focus on market niche: Use information systems to enable a specific market focus and serve this narrow target market better than competitors.

For instance, Land's End uses mass customization, offering individually tailored products or services using the same production resources as mass production, to custom-tailor clothing to individual customer specifications.

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

For example, a supply chain management system can incorporate an efficient customer response system to directly link consumer behavior to distribution and production and supply chains, helping lower inventory and distribution costs.

Low-cost leadership: Use information systems to achieve the lowest operational costs and the lowest prices.

There are four generic strategies used to manage competitive forces, each of which often is enabled by using information technology and systems: In PorterвЂ™s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four forces in the industryвЂ™s environment: new market entrants, substitute products, customers, and suppliers.

Suppliers: The more different suppliers a firm has, the greater control it can exercise over suppliers in terms of price, quality, and delivery schedules.ДЇIGURE 3-10 PORTERвЂ™S COMPETITIVE FORCES MODEL.

Customers: The power of customers grows if they can easily switch to a competitor's products and services, or if they can force a business and its competitors to compete on price alone in a transparent marketplace where there is little product differentiation and all prices are known instantly (such as on the Internet).

The more substitute products and services in your industry, the less you can control pricing and raise your profit margins. For example, Internet telephone service can substitute for traditional telephone service.

Substitute products and services: These are substitutes that your customers might use if your prices become too high.

Some industries have lower barriers to entry, ie: cost less for a new company to enter the field.

New market entrants: New companies have certain advantages, such as not being locked into old equipment and high motivation, as well as disadvantages, such as less expertise and little brand recognition.

Traditional competitors: Existing firms that share a firm's market space.Michael Porter's competitive forces model describes five competitive forces that shape the fate of the firm. Using Information Systems to Achieve Competitive AdvantageДЇirms with a competitive advantage over others typically have access to special resources that others do not or are able to use resources more efficiently, resulting in higher revenue growth, profitability, or productivity growth (efficiency), all of which ultimately in the long run translate into higher stock market valuations than their competitors.

Example of threat of new entrants