The global digital economy market development through the prism of Porter’s Five Forces model

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Type of the article: Theoretical Article

Abstract
The rapid pace of digitalization is radically transforming the global economy, necessitating a rethinking of traditional competitive strategies. Accordingly, the purpose of this study is to advance the classical principles of Porter’s Five Forces model for assessing the competitive environment of the global digital economy. The paper proposes a refined interpretation of the competitive forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and innovations, and the intensity of competitiveness within the global digital market. An expert-based methodology, supported by our evaluation framework, was applied to explore and characterize these competitive forces, comprising 25 indicators of competitive intensity and complemented by a comprehensive SWOT analysis.
The empirical foundation for the qualitative and quantitative assessment was drawn from international rankings and indices published by leading organizations and research institutions between 2020 and 2022. The qualitative and quantitative assessment findings indicate that the global digital economy exhibits high dynamism and intense competition, and market structure transformation. The SWOT analysis underscores substantial growth potential driven by demand, scalability, and innovation, while highlighting critical challenges related to cybersecurity, regulatory gaps, market concentration, and equitable access to digital resources.
Integrating the evaluation of competitive forces with SWOT insights allows for systematic identification of strategic development pathways, supporting evidence-based managerial and policy decisions at both national and international levels. The study emphasizes the need for empirical validation and further research on the evolving dynamics of competitiveness in the global digital era.

Acknowledgment
This paper has been/was/is funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (AP23485949) “Economic thinking, population’s behavior in the context of doctrine’s implementation to the new economic Kazakhstan’s policy: factors, prerequisites and mechanism.”

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    • Figure 1. Porter’s Five Forces assessment of the global digital economy
    • Figure A1. Implementation of Porter’s Five Forces concept for assessing the competitive environment in the international digital market
    • Table 1. Analysis of strengths, weaknesses, opportunities, and threats (SWOT analysis) of the global digital economy
    • Table 2. Strategic directions for the development of the global digital economy market
    • Table B1. Results of Porter’s Five Forces assessment of the global digital economy
    • Conceptualization
      Dinara Mussayeva, Nataliia Savina
    • Data curation
      Dinara Mussayeva, Axana Panzabekova
    • Formal Analysis
      Dinara Mussayeva, Nataliia Savina
    • Funding acquisition
      Dinara Mussayeva
    • Investigation
      Dinara Mussayeva
    • Methodology
      Dinara Mussayeva, Nataliia Savina
    • Project administration
      Dinara Mussayeva
    • Resources
      Dinara Mussayeva, Nataliia Savina, Axana Panzabekova
    • Software
      Dinara Mussayeva
    • Supervision
      Dinara Mussayeva, Axana Panzabekova
    • Validation
      Dinara Mussayeva, Nataliia Savina, Axana Panzabekova
    • Visualization
      Dinara Mussayeva, Nataliia Savina, Axana Panzabekova
    • Writing – original draft
      Dinara Mussayeva, Nataliia Savina, Axana Panzabekova
    • Writing – review & editing
      Dinara Mussayeva, Nataliia Savina
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