Question: A firm must continually evaluate the external environment in which it competes. Porters Five Forces model, or an extension of it, is used to evaluate
A firm must continually evaluate the external environment in which it competes. Porters Five Forces model, or an extension of it, is used to evaluate an industry as a whole. One of the extensions is the additional consideration of the power of complementors. In recent years independent restaurant delivery services have grown in popularity and utilization (i.e. GrubHub, DoorDash, etc. as opposed to pizza delivery services by Pizza Hut, Dominos, Papa Johns, etc.). Independent restaurant delivery is a complementary service to restaurants. In the context of a Porters Competitive Forces analysis, consider whether the power of these complementors a weak or strong competitive force from the standpoint of the restaurant industry. Was it a weak or strong competitive force before Covid-19? Is it a weak or strong competitive force now? Is the relative strength stronger or weaker now compared to before Covid-19? Please attach references.
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