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The rise of Information Technology over the past decades has contributed to the increase of digital and electronic information processing greatly. As a result, information security has become a major strategic concern of firms and business strategy needs to incorporate information security deliberately. This paper explores strategic implications of information security by conducting an empirical firm case study, an assessment of a national market and a more general industry analysis. The investigation is based upon concepts widely acknowledged in strategic management. The results argue the unambiguous necessity of incorporation of information security in the analysis of business strategy and suggest a number of strategic issues related to firm resources, market conditions and industry circumstances that are of essential meaning for strategy development.
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