According to Porters Five Forces Model, in my opinion, competition has increased overall as a result of the internet and e-Commerce. The internet and IT has made it possible to both focus on the top and bottom lines and market share is expanded and costs are cut. Many products and services exist just online, major companies have gone online to successfully augment the brick and mortar corporations, and the playing field is all the way to edges of cyberspace, wherever that is. We will further evaluate this stepping through all five forces.

Buyer power is higher when buyers have more choices. Businesses are forced to add value to their products and services to get loyalty. Many loyalty programs include excellent services that customers demand on-line. Customers want to solve their problems and many times they are more successful on-line than on-phone. Also, we see internet savvy businesses springing up offering more valuable goods and services at lower costs. Now with the advent of eBay, many people are assuming roles as drop shippers. Individuals can have a thriving business selling goods of larger companies without having to carry inventory.

Supplier power is higher when buyers have fewer choices from whom to buy. As mentioned earlier, drop shipping has increased the amount of suppliers available. All an individual has to do is form and agreement to sell products for the company. The company takes care of all the logistics. The same is true of associates programs that amazon.com and google.com offer. Associates allow a webmaster to earn money by recommending products from others. This increases supplier offerings.

Threat of substitute products or services is high when there are many product alternatives. This is different than having many suppliers. Examples of alternatives are exchanging brand names, substituting credit card capabilities, and looking at better values from cheaper sources. The internet allows this with the global economy. I can substitute my product by purchasing from companies overseas where labor, services and products are cheaper, but of comparable quality.

Threat of new entrants is high when it is easy for new competition to enter the market. Well, what have we been talking about? Now, small operations can open shop with less than $10.00 per month and make a lot of money. As inventive as people are, there are always opportunities to do improve a product or service or just create and sell something new. Recently, many new entrants have made even more money authoring Ebooks that tell others how to do what they did. Rivalry among competitors is high when competition is more intense within industries.

On-line book stores and catalog companies are an excellent example. Amazon.com and Barnesandnoble.com are very competitive. However, there are many also smaller niche affiliate bookstores that when combined take a great deal of market share. They offer even more competition. However, both major bookstores have used IT to create value for their customers. These values include associates programs, ease of payment and shipping and many, many others.

The internet offers avenues of competition to existing companies and opportunities for start ups. Now businesses can enter the market on-line with few barriers to entry. Porters Five Forces Model can help demonstrate the attractiveness of starting your on-line business. A business person should use the model to identify competition, make a plan, and implement the process.

About the Author: Jeffrey W. Bennett is the Founder and director of LayMentor Ministries. This ministry is dedicated to training church and other volunteer leaders to be more effective. Jeff speaks and writes on similar concepts taught in most MBA courses and makes it easy to adapt to all leadership levels. The volunteer drives our churches and communities and the impact can be amazing. For PowerPoint presentations of this article, visit http://www.jeffreywbennett.com/index_files/resources.htm He is also the author of the Missionary/Adventure novel Under the Lontar Palm available on line at http://www.jeffreywbennett.com or in major and online bookstores.

¶ 11:00 PM 0 comments

affiliate marketing is the easiest way to get into the internet marketing business. Using articles is by far the cheapest way to drive traffic to your affiliates sites and get you some sales. In a little I am going to teach you a very important way to boost your affiliate marketing income.

Right now I want to talk about writing the article. Writing an article is very important if you are writing it and want the person to go into your author box and check out more about you. In order to do this you need to write articles with QUALITY content. By quality I mean with good information, teaching the reader something, and being an expert on what you are writing, or at least make it should like youre an expert. This will inevitably draw the readers attention to the authors box, and especially the affiliate link that you have in your authors box.

Now you have the basic idea of writing an article and why it is important to have quality content. The next thing that I want to talk about is creating a squeeze page. A squeeze page is a short sales copy that asks for the persons name and email at the bottom of the page. And instead of sending the person straight to the affiliates website, you send them to your squeeze page; they fill out the form, and then get directed to the affiliates website.

Why do this? Because then you can send them follow up messages promoting the product more. Chances are most people arent going to buy the product their first time looking at it, but if you send them follow up messages and have them come back 2 or 3 times your chances of making that sale are exponentially higher. Also you are building a list. A list is the most important part to affiliate marketing, at least in my opinion. Why is it the most important part? Because then the people know you and they know that you offer quality stuff. Then you can sell to them over and over again.

Most people dont understand the power of list building. If you can build a list and get people to trust that you know what you are talking about. You can sell to them over and over again. And guess what, theyll buy what youre promoting!

Andrew Portela is an experienced affiliate marketer that loves to spread the word about his wonderful career. For more information on the things learned in this article visit www.affilorama.com

¶ 1:21 PM 0 comments