Internet Strategy and the Retail Food Industry
Internet Strategy & The Retail Food Industry Michael Porter gave an intellectual outline of how the Internet should complement a current strategy, rather than the ultimate focus for a company’s success or failure. In order for a company to gain a competitive advantage through use of the Internet, they should build off their previously proven traditional strategies. ... There are many risks and benefits that can be derived from empowering the customer, the vendor, and the company when devising an Internet strategy. ... Porter believes that there are five forces that influences industry structure through the Internet – the bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, the threat of substitute products, and the level of competition in an industry. The bargaining power of customers within the retail food industry has gained incredible momentum in recent years. With the thousands of search engines available via the Internet, people are now able to find any type of information that they desire. ... The retail food industries relationship with suppliers has also changed due to the technologies of the Internet.