The five forces in Porter's Five Forces Model is
BUYER POWER
Buyer power will be high when buyers have many choices of whom to buy and it will be low when their choices are few. To reduce buyer power an organization must make it more attractive to buy from the company not from the competitors. The best practices of IT- based is loyalty program in travel industry for example rewards on free airlines tickets or hotel stays.
SUPPLIER POWER
Supplier power will be high when buyers have few choices whom to buy from and will low when their choices are many. The best practices of IT to create competitive advantage. For example, business to business marketplace. Private change allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid. Reverse auction is an auction format in which increasingly lower bids.
THREAT OF SUBSTITUTES PRODUCTS & SERVICES
It will be high when there are many alternatives to a product or services and will be low when there are few alternatives from which to choose. Ideally, an organization would like to be on a market in which there a few substitutes of their product\or services
THREAT OF NEW ENTRANTS
High when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Entry barriers is a product or services feature that customers have come to expect from organizations and must be offered by entering organization to compete and survive. Best practices of IT for example new bank must offers online paying bills, acc monitoring to compete.
RIVALRY AMONG EXISTENCE COMPETITORS
High when competition is fierce in a market and will be low when competition is more complacent.
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