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

Abstract

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.

JEL Classification: M19