"Being big offers a much smaller advantage than it used to. Being big ain't enough, anymore."
This is a very helpful series on look at the effect the "social era" has on
1) the intensity of competition threat and,
2) the threat of substitutes.
While social media doesn't shift Porter's model, the social era surely does.
...the capital requirements to enter markets have declined, the marginal cost of reaching consumers is effectively zero, and one-off production is not hard to do...
Being big offers a much smaller advantage than it used to. Being big ain't enough, anymore.
Author: Nilofer Merchant is a corporate director at a NASDAQ-traded firm and a lecturer at Stanford, formerly the founder and CEO of Rubicon. After working at Apple and Autodesk and with many other Fortune 500 firms, she wrote The New How to share the secrets of unlocking collaborative innovation.