June 13, 2013

Economics of Internet Business


The internet generation is beginning to emerge. As of now only ¼ of the world is approximately web user according to a web development book. This means that internet is still in its infancy stage. Not all have full access to the said flat form; thus, there is a high probability that this industry will still grow.

Today, because of high unemployment rate in our country, we can consider to look for an opportunity to build business using the internet.

The good thing about doing business using internet flat form is due to the fact that it is a perfect market. When I say perfect market, I mean that the market is perfectly competitive in the sense that there are no barriers in doing business; all of the developers or website owners are in the same playing field. It is also easy to enter the market (without any registrations and the likes) and easy to exit if you feel that you are not profiting from the business.  If compared to a strategy, internet is a blue ocean (strategy); you just need to mind your own business to profit.

Internet market is so highly competitive that unable to improve or develop one's website (e.g. the case study of Friendster.com), product, information, and the likes will result to downsizing of the market coverage.  

On one hand, the local market cannot be considered as a perfectly competitive because other players have comparative or competitive advantage over you. There are also barriers to entry; thus, the playing field is not equal.

 Hope this article will give you an idea to build business in the internet. Cheers!


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