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The New Market Conditions

In: THE END OF COMPETITION The Impact of the Network Economy

Author

Listed:
  • COR MOLENAAR

Abstract

The use of the Internet has changed the competitive relationships and the market conditions. As a result, it has become necessary for providers to go along with the innovation of one of the providers. When a provider successfully applies new technologies within the traditional business model, it can lead to lower costs in the so-called input–output model and in the processing. The application of the Internet can consequently reduce the price level or, if the market price forms the basis, lead to a higher profit margin. Other providers would have to tag along to ensure they do not fall behind the competition. This is a vicious circle; despite the innovation brought about by the Internet, this will only lead to an increasingly level playing field.

Suggested Citation

  • Cor Molenaar, 2020. "The New Market Conditions," World Scientific Book Chapters, in: THE END OF COMPETITION The Impact of the Network Economy, chapter 3, pages 33-50, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811212321_0003
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    More about this item

    Keywords

    Network Economy; Supply Chain; Technology; Customers; Marketing; Asia; Platform Strategy; Multisided Platform; Collaboration;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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