Information systems are the key decision component of a firm’s business strategy. Cisco made use of
internet and its information systems to accomplish its following strategies: to create a business ecology
market its technology to networking world; to create a virtual organization and outsourcing many
operational and customer services and focusing its resources on its own core product innovation strategy;
to showcase its own internet use as a marketing tool. Cisco’s strategy enabled it to sustain high growth
rates throughout 1990s. In late 2000, however Cisco’s market collapsed and experienced a loss of billions
of dollars in unsold inventory.