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MG213 Class Week 04
MG213 Class Week 04
• Start early
Initial steps: Brainstorming
• Explore the potential competitive forces
on the case
– (Porter)
Porter’s five competitive forces
• CF1 – Threat of new entrants
• CF2 – Intensity of rivalry among existing
competitors
• CF3 – Pressures from substitute products
• CF4 – Bargaining power of buyers
• CF5 – Bargaining power of suppliers
• However, companies that use AI to
supplement their search results may find
any advantage shortlived.
• Google said last week that it would start
to include results from its own language
AI systems in its results “very soon”, and
that it would let users interact with the
new AI technology directly.
• That may make it hard for rivals to come
up with anything distinctive enough to
break Google’s grip on the market, said
Sterling. “If Bing integrates AI into search
in the same way Google does then we
might not see any change.”
• Yet even if the impact on competition
turns out to be muted, the broader
economic implications for the web still
look profound. For publishers who rely on
web traffic generated by search engines,
for instance, there is a risk that internet
users will find answers without needing to
click through to the underlying pages.
Porter and case
• Can technology be used to build barriers
against new entrants (CF1)?