The Internet allows traditional competitors to introduce new products and services and attract customers. It provides a low cost avenue for new market entrants. Consumers can easily and quickly find substitute products and services through the Internet. Customers can use information provided on the Internet to create new competition between companies while suppliers can increase their market power. Table below summarizes the impact the Internet is having on many industries.


Because of the tremendous growth of the Internet and its influence on all five elements of Porter‘s model, businesses must continually monitor the organizational environment, especially the external environment for potential challenges and opportunities. Those businesses that adapt their business model stand a chance of success. Those businesses who ignore the environmental changes and remain stagnant, risk everything they have.