MIS Midterm Exam Yihan Wang1. Using Porter's Five Forces Model as a basis, discuss how the computer application "Amazon" can be used to ensure business success and maintain a competitive advantage. Porter's Five Forces Analysis is a framework for industrial analysis and business strategy development. Porter's five forces include established industry rivals, customers, suppliers, potential entrants, and substitute products. For Amazon, Amazon's rivalries are Barnes & Noble, E-bay, Walmart. For Barnes & Noble and Walmart, they adopt the “Brick and click” mode. While Amazon and E-bay adopt the “fully online” mode. Amazon in particular has the “one click” patent for attacking and retaining customers. However, Amazon still faces strong rivalry in the industry, established bookstores have a good customer base, high brand recognition, brand awareness, etc. Additionally, established bookstores are expanding their operations to the Internet, increasing rivalry between industries. Additionally, completely online companies like Amazon and E-bay themselves have intense rivalry with each other. The threat of new entrants is high because it is cheaper to set up an online store than to set up a physical bookstore. In addition, bookstores can easily develop their business on the Internet since they have resources that allow them to acquire their physical store business. However, as Amazon has one-click shopping technology and brand recognition makes it difficult for competitors to compete with Amazon. The bargaining power of customers is high because customers have a lot of choices. For example, if you want to buy a book, you can go to Barnes & Noble, E-bay or other websites, or even many physical bookstores. This kind of intense competition makes Amazon the price of their p...... middle of paper ......ly. They are ready to show their ads on Google. Google advertising generates approximately $22 billion per year. Thanks to this advertising money, Google can offer all products and services to users for free. With the rapid growth of the number of users on the Internet and the advent of mobile telecommunications, Google is growing more and more. Additionally, Google's ad targeting is robust enough: many advertisers will pay extra to show their ads on Google, and the premium is substantial. The ads are highly targeted to specific interested users. This clearly makes advertising more relevant to users. It's a very powerful combination. In addition to advertising, Google also manages YouTube, Motorola, Android operating system, etc. These are Google's other sources of revenue. But Google remains, at its core, an online advertising company.