Read the case study below and answer the question that follows. Porter five forces model, developed by Michael E. Porter

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Read the case study below and answer the question thatfollows.
Porter five forces model, developed by Michael E. Porter ofHarvard University in 1979, holds the purpose to analyse theindustry in order to determine the level of intensity regarding thecompetition and attractiveness of the industry. The attractivenessof an industry is measured in terms of profit; more profitabilitymeans a more attractive industry and low profitability means a lowattractive industry. Porter’s Five Forces model is a powerfulmanagement tool for analysing the current industry profitabilityand attractiveness by using the outside-in perspective. Within thelast decades, the model has attracted some criticism because of thedeveloping Internet economy. Due to an increasing significance ofDigitalization, Globalization and Deregulation, the industrystructure of the ‘Old Economy’ changed fundamentally. The ‘NewEconomy’ is not comparable with the ‘Old Economy’, which is thebasis of the Five Forces model. Moreover, the last decades haveshown that Information Technology became more and more important.Nowadays, Technology is one of the most important drivers forchange and not only important for the implementation of change. Theoutcome of this critical literature review shows that the three newforces changed the industry structure, but they do not restructurethe model. Porter’s Five Forces cannot be considered as outdated.The basic idea that each company is operating in a network ofBuyers, Suppliers, Substitutes, New Entrants and Competitors isstill valid. The three new forces just influence each of the FiveForces. An example is that the Bargaining Power of Buyers increaseddue to the access to much more information because of the Internet.Furthermore, the Threat of New Entrants decreased since companieshave to make high investments in Technology which has a deterrenteffect on new potential market entrants.
Q: The Emergence of the digital firm and globalisationare two of the three factors which have fundamentally altered theprocess between analysing a company in the “Old Economy” andanalysing a company in the “New Economy”. Analyse the effects ofthese two factors in the context of Porter’s Five ForcesModel.