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Strategic Information Systems for Competitive Advantage
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The company responded with two strategies. First, it decided to get out of the
leisure travel business, instead becoming a purely corporate travel agency. Second,
it decided to rebate customers with the entire commission the agency receives
and instead bill customers by service provided. Rosenbluth charges fees, for example,
for consultation on how to lower costs, for development of in-house
travel policies, for negotiating for their clients with travel providers, and for calls
answered by the company staff. To implement this second strategy, which completely
changed the company’s business model, it was necessary to use several
innovative information systems.