makes

it easy for rivals to compete on price alone.

imposes

a significant cost of entry, due to infrastructure requirements.

has

lessened competitive rivalries.

increases

the difference between competitors because of the wide availability of

information.

creating

new opportunities for building loyal customer bases.

lowering

transaction costs.

making

information available to everyone.

reducing

barriers to entry.

making

more products available.

keep

costs low

fine-tune

merchandise availability

transmit

orders to restock directly to its suppliers

provide

mass customization

better

meet customer demands

Intensive

customer

data analysis

Complex

trend

forecasting

Intensive

product

trend analysis

Tailoring

products

to the client

A

grocery store chain's use of information systems to produce products and

services at a lower price than competitors

A

hot tub dealer's use of information systems to determine which models and

options its customers are most likely to buy

A

PC manufacturer's use of information systems to facilitate direct access from

suppliers to production schedules

A

shoe manufacturer's use of information systems in selling custom, made-to-order

shoes directly to customers

A

hotel chain's use of information systems to analyze detailed data on guests to

determine each guest's profitability