Q.Porter Suggests that the Internet will Increase Rather than Decrease the Importance of Strategic Management in the Future

Porter (2001) summarises the relative advantages of the Internet and how these are worthless without a strategic approach in his article. He uses his own five forces analysis to analyse the "underlying forces of competition" and states that this analysis is still necessary to "illuminate" areas of potential profitability for any company or in any industry. He suggests that using his value chain analysis should be the basis for exploration into areas in which the Internet can provide an advantage.
Strategy has clusters as is suggested in diagram one (adapted from Chaffey 2002:163). …