Can rethinking Porter's strategies in internet era cause industry expansion?

Γεώργιος Δ. Καραγιαννόπουλος, Νικόλαος Β. Γεωργόπουλος


Internet, being an extremely important new technology, causes some major changes to market
rules. No one can doubt that an exaggerated phenomenon took place during the prior period. Still
it is precocious to assert that Internet has negative implications to industry profitability, based on
these phenomena. In a turbulently changing competitive environment, companies have to gain
part of the additional industry value that innovative ideas can produce and not only defend their
position against the market forces. Therefore, rethinking some of Porter's arguments regarding the
five forces model seems to be a necessity to achieve such industry expansion.


Technological innovations

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