If structural change within an industry happens to be very rapid, then Porter's five forces model of competition has limited predictability. How can fast-pace industry firms -such as technology-driven or e-commerce firms-predict their competition?

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The Answer is When the industry environment changes rapidly, forecasting becomes more difficult because uncertainty increases.
However, prediction always remains possible, even if the scope of possible futures becomes larger. Speed of change is another dimension that amplifies the difficulty.
Still, the Porter model's predictability is not nullified by strong uncertainty and high speed change. The same forces are at play in the industry but they accommodate larger variations and evolve faster.
In such an environment, other techniques may be necessary, such as forecasting methods to build more comprehensive representations of possible futures. Scanning will be sophisticated enough to detect very early signals of change in the environment and behave accordingly.
Strategies have to be flexible and not as detailed as in a very stable environment. Some basic but meaningful principles prove to be a better guide in that context. Strategic scenarios should be available with multiple options. Strategic choices should offer robustness in case the expected scenario does not take place.
Forecasting competition is difficult and depends on the structure of the industry. An oligopolistic industry may require tools for analyzing games between few actors whereas fragmented industries will need tools to predict and monitor large set of rivals. The classic steps of analysis (e.g. a rival's current strategy, objectives, or assumptions about the industry, and a rival's resources and competencies) are still appropriate in this type of environment.

If Structural Change Within an Industry Happens to Be Very