How the internet affects Porter’s 5 forces model

In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development.

Porter, the strategy guru, used concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. This model describes the attributes of an attractive industry and thus suggests that opportunities will be greater, and threats less, in these kinds of industries. Attractiveness in this context refers to the overall industry profitability. An “unattractive” industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching “pure competition”. Continue reading “How the internet affects Porter’s 5 forces model”

5 Evils caused by Google and Yahoo

While we are all die hard Google and Yahoo fans (not to forget Bing and the others), very few of us actually realize the rippling effects of the efficiencies of these search engines on our society.  Google has been at the center of antitrust investigations and a controversial Italian court case in recent times. But is  this the sole reason why people should question the search giant’s ‘Don’t be evil’ mantra? These search engines have created a major problem many of us fail to realize, even though it is staring at us on our face. Continue reading “5 Evils caused by Google and Yahoo”