The Internet and its widespread application have changed many industries, most notably commerce since it allowed customers and sellers to interact more easily using websites. Most notably, it affected the rivalry between companies because nowadays, customers can gather information about brands and receive offers from organisations worldwide. This is especially evident in e-commerce, where people can order goods from multinational platforms, such as Aliexpress, Amazon, eBay, and others and receive items from different countries. Hence, the first element that describes the changes that the Internet promoted is improved access to information and the ability to purchase goods. In this context, a brand competes with companies from all over the world, instead of competing with local stores or manufacturers only.
Wang and Zhang cite Porter’s five forces to describe how the Internet affects industry competition, arguing that price competition is the most evident example of intensified rivalry. Therefore, since consumers can compare prices of items quickly, the companies have to provide additional value to ensure profitability. Strategic positioning becomes crucial in this regard since operational efficiency is less significant. However, an opposing view is that the Internet promotes the creation of so-called superstars in the market, which can also be referred to as the superstar effect. This means that the nature of communication within the Internet can result in one product or company becoming popular among customers. Hence, the competition, in this case, is impossible since the consumers do not search for other options, choosing the so-called superstar instead. In general, although the Internet promotes competitive rivalry, especially in regards to price, it prompts the existence of superstar products or brands.