This paper will focus on the details of the Michael Porter’s model and how information systems help in the five force process. These forces are buyer power, supplier power, threat of substitute products or services, threat of new entrants and rivalry among existing competitors. The concept of these forces is that they influence how managers make the big decision to enter into a new market. If the forces show that the situation is too negative then the company might make a good decision and not go into this market and save a lot of money and problems.
Buyer power means how many choices customers have a lot of choice where they are going to shop. If there are too many choices for buyers then they can just shop other places and competition might be very strong. Supplier power is also important. This means that if there are not enough suppliers then those small amount of suppliers can control th...
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