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Essay / Research Paper Abstract
When Viewed through Porter’s Model of Industry Competition This 3 page paper considers how the development of e-commerce and the use of the internet has changed the competitive environment when looking at if from the perspective of Porters Five Forces model. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEdigecosys.rtf
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Unformatted sample text from the term paper:
trade take place. The medium has been able to provide many companies with a high level of opportunity, but at the same time business are also faced with many new
threats. The digital eco-system is changing rapidly and as such it is changing the way businesses have to develop strategy and compete. This become very apparent when considered from the
perspective porters model of industry competition. Porters most common model used when examining competition is that of the five forces model. By looking at each of these forces the
way this is impacting competition can be appreciated. The first of Porters Five forces is that of the existing competition. The traditional model sees limitations placed in what is deemed
to be existing competition. In the past there were many geographical barriers. A corner shop that was selling goods in one part of the country and sold to visitor only
would not have seen a small shop selling the same goods, but 500 miles away as competition. They were not selling to the same markets (Thompson, 2005). The development of
the internet and the digital ecosystem has seen business move to a virtual environment, where the location of the business does not matter, goods are seen on the web pages
of the internet and tare then sent out, where the goods are digital they can be delivered immediately. Not only can shops 500 miles apart compete on equal footing, companies
that are located in different countries may also be seen as viable competitors. This increases the level of competition, not only are companies on the internet facing more competition as
the barrier to trade fall, but also bricks and mortar companies. Even if they do not trade on the internet they face increased competition as their customers are increasingly buying
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