The Use of Strategic Forces to Understand Competitive Advantages Provided by Information Technology

Porter’s Five Forces model of business strategy is foundational to understanding strategic forces and the role of information technology in the larger strategic framework of an organization. The authors describe how information technology changes the strength and/or influence of the competitive forces in Porter’s model. Furthermore, understanding how specific technologies potentially change specific forces within Porter’s model is the foundation of IT strategy. This theoretical framework of strategic alignment is developed through cases demonstrating how specific technologies change the strategic forces within specific industries and how organizations should take advantage of these changing forces. Empirical evidence for the validity of this approach is established through interviews in 136 businesses. Results indicate the utility of Porter’s model as applied to strategic information technology was affirmed. Specific findings revealed how current technologies are impacting the competitive landscape