Internet Analysis Using Porter’s Five Forces Framework

When applying Porter’s five forces to analyse the Internet, one can understand the potential of this technology and the many benefits it provides to its users, including businesses that use it to improve their information management. The competitive rivalry element in regards to the Internet is not applicable since this technology is more advanced than others. Arguably, the speed with which the information is transferred through the Internet network is remarkable, and the number of people that use this communication method is significant. Mitchell states that there are many ways to access the Internet, for instance, through cable networks or satellite connections. However, there is no competition for this communication channel.

In terms of supplier power, the specifics of the Internet suggest that it is an independent network. There can be an issue with the suppliers, for example, companies that develop specific software used by the business. However, in general, the Internet allows organisations to be reasonably independent of suppliers and price changes, meaning that in this domain, the Internet is a superior technology to use. While as a product, the Internet is pretty unique, the fact that it operates independently is a benefit.

When reviewing the specifics, one can argue that in the context of the Internet, one can review supplier power as the speed and providers that allow users to connect to the Internet. However, the general trend discussed by Roulette is that Internet access should become global through satellite connection allowing high-speed access at minimum costs. One can argue that this is an impact of the buyer power since the demand and the potential benefits that the improved access to the Internet can have are enormous. The threat of substitution is minimal, since, based on global statistics, over 80% of people in Europe have access to the web. Developing an alternative or having a new technology entering the market that would be as attractive for millions of people is a difficult task, hence in this domain, the Internet overcomes its competitors.

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