According to Chaffey, (2011), E-commerce is a mediated information exchange between an organization that and its external stakeholders that is electronic (p.10). One of the stakeholders that instantly come into one’s mind are the customers. Electronic commerce is here to stay and it is occurring at an unprecedented rate. Due to its growth, and its increasing prevalence in businesses today, new questions need to be asked. This is with regard to how relevant linear competitive strategy formulation and the Porterian models are to e-commerce businesses today. Porter’s model highlights that five essential competitive forces exist in a business situation. They include; the power of the Supplier, the Buyer’s power, the Competitive rivalry, the threat of substitution, and the threat of new entry. Michael Porter’s five forces are externally oriented; quite different from the linear competitive strategy formulation processes which are internally oriented. The steps of strategy formulation are; the establishment of organizational objectives, the analysis of organizational environment, the forming of goals that are quantitative, the objectives in context with the divisional plans, the analysis of performance, and the selection of strategy. With the changes that e-commerce brings, certain aspects of the linear competitive strategy and the Porterian models are becoming inapplicable.