Wednesday 26 June 2019
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IDG Contributor Network: How digital business disrupts the five forces of industry competition

Exactly why is digital business so disruptive to traditional business models and traditional notions of industry competition? A useful way to analyze the situation is by looking at Porter’s model of the five forces of industry competition and exploring how digital business is impacting each of the various forces.

According to Michael E. Porter, in one of his landmark books, titled Competitive Strategy, “In any industry, whether it is domestic or international or produces a product or a service, the rules of competition are embodied in five competitive forces: the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among the existing competitors.”

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Source: computerworld