Digitalization and Business

Abstract

Digitalization is crucial for the sustainability of businesses in the modern world. The process of digitalization encompasses the incorporation of digital technologies across all facets of business operations, such as production, marketing, sales, customer relations, and supply chain management. By adopting digital technologies, businesses can remain competitive in the market and stay ahead of their competitors. This study aims to discuss the concept of digitalization, its importance for businesses, and its place in competition based on Porter's five forces model. Digitalization and its consequences are evaluated through the lens of Porter's five forces: the threat of new entrants, the threat of substitute products or services, the bargaining power of buyers, the bargaining power of suppliers, and rivalry among existing competitors.