Many aspects of e-commerce and its effect on competition and the intensity of competition have not yet been covered or are already outdated due to the enormously fast pace of change in e-commerce. The following study will cover new aspects of competitive change and tries to analyse the effect that e-commerce has on the competitive intensity of an industry’s environment. Not only will this study focus on the essential components that differentiate e-commerce from traditional commerce, additional research will be done on the impact of e-commerce on buyer power and price competition. Results on these aspects will be used to analyse e-commerce’ effect on competition.