bMighty

From Porter’s Five Forces to the Permeable Corporation: A New Business Model
February 13, 2008

By Nilofer Merchant

Web 2.0 efficiencies disrupt old business models by reducing manufacturing and investment costs and decentralizing information. It’s time for the permeable corporation, where success depends upon cooperation and interaction.

I’ve been studying Web 2.0 business models for some time now, and as the new clashes with the old I keep seeing the inherent and inevitable disruption. This is typified and represented by Michael Porter’s Five Forces, a model that defines the forces that influence and shape an industry. But the more I looked at Porter’s analysis, the more I understood that while this model demonstrates some elements of the Web 2.0 industry, this is an industry that is redefining models and requires a fresh analysis and a new approach in order for its companies to thrive.

The original publication can be found at this link.

Tags: advertising-based revenue, AJAX, ancillary value, customization, ecosystem economics, Nilofer Merchant, permeable corporation, SaaS, user-generated value, Web 2.0 Porter's Model
Practice: Define