Chapter 3, Problem 17MLM

Explanation of Solution

Impact of the Internet on the five competitive forces:

The below are the impacts of the Internet on the five competitive forces:

• Direct competition
  • There is a chance where there may be an increase in the number of competitors.
  • Based on characteristics of product or services.
  • Depends based on fixed cost amount.
  • Based on the height that is fixed for the exit barriers.
  • Competitors that is present in diversity.
• New entrance entry
  • Differentiation in the product.
  • Requirement of the strong capital foundation.
  • The costs that is required in switching between.
  • The access that needs to be made with the channels that need to be distributed.
• Substitutes
  • Alternative that is present relative to the quality or price ratio...