Exhibit 14. 1 how the internet Influences Industry Structure (+)By making the overall Threat of substitute more efficient. the Inter products or expand the size of the services substitution threats Bargaining power of Rivalry among Bargaining Bargaining competitors channels end users (-)Reduces differences among (+)Eliminates (-)Shifts tends to ompetitors as offerings are bargaining difficult to keep proprietary power to e ( Migrates competition to price mproves ()Widens the geographic market bargaining (-)Reduces ( The Internet provides a channel increasing the number of switching for suppliers to reach end users, competitors traditional reducing the leverage of (-) Lowers variable cost relative to ntervening companies fixed cost, increasing pressures (-)Internet procurement and digital for price discounting markets tend to give all companies equal access to suppliers, and gravitate procurement to standardized products that reduce differentiation (- Reduces barriers to entry such as the Barriers to entry (-)Reduced barriers to entry and need for a sales force. access to channels and physical assets-anything that he proliferation of competitors downstream shifts power to nternet technology eliminates or makes easier to do reduces barriers to entry pplications are difficult to keep proprietary from new entrants (-) Aflood of new entrants has come into Electronic Commerc Prentice Hall 2006 6Electronic Commerce Prentice Hall © 2006 6 Exhibit 14.1 How the Internet Influences Industry Structure