1. In today’s world direct competitors are allowed to take their stand. Yet competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry. For instance, the global auto industry appears to have nothing in common with the worldwide market for art masterpieces or the heavily regulated health-care delivery industry in Europe where we can apply porter’s threat of substitution. In which health care medicines are manufactured majorly in Asian countries and it’s cheaper to manufacture there instead of manufacturing in European country. So, EU has implemented taxes while importing medicines from India and China in order to grow domestic market.

2. In 21st century dynamic environment is there in order to succeed, different companies needs to tie the knot to be successful. Different companies have expertise in their field and each company needs advantage from one another to make its own technology better. The accuracy, speed and precision of IT systems means the difference between winning or losing customers, keeping supply chains profitable, and solidly translating new concepts into revenue-producing products and services. The world’s best-run services businesses have customer-driven IT as part of their DNA. It is much to these companies are internally using porter’s five theory to show the superiority to each other and at the same time taking advantage of each other.

3. IT issues vary with the development of a country, which is often measured with statistical indexes, such as income per capita (GDP), literacy rate, international trade volume, and investment dollars. When customers feel they are