Substitution in the Five Forces Model
I am interested in 'substitutes
' such as:
1. New inventions - e.g. Mobile phones as communicators
2. New applications of existing products - e.g. Internet on mobile phones
3. New technologies to gainfully use existing materials more effectively -e.g. Nanotechnology
4. New discoveries about an existing product/material - e.g. Use of aspirin to treat heart ailments
The list goes on. Is the impact of the likes of the above covered in Porter's framework? I think the threat from such forces which makes the product or service obsolescent / redundant is more important today as compared to all other forces put together, because the time frames for new inventions and discoveries to take place has come down. Can we call it an increase in the rate of evolution of the mankind?