Purpose – To investigate the impact of the internet in “traditional” market rules.

Design/methodology/approach – An opinion piece based on Michael Porter's arguments for the new economy.

Finding – Michael Porter's arguments for the new economy provide a useful starting point in the analysis of the environment. His arguments are based on exaggerated phenomena. Factors that determine a sector's profitability could be enriched with the innovation that prevails in the particular sector.

Originality/value – An attempt to criticize Porter's thoughts regarding internet and industry structure and to enrich the Porter's five forces model with the “power of innovation”.