Traditionally, to operate a successful business, that satisfies the needs and wants of society, requires a sufficient amount of business resources that include material, information, financial and human capital. A business in today's service and technology-based economy requires less and less combined material and human capital. Instead, relatively more financial and informational capital is needed for a business to remain competitive.
Technology companies that have more financial capital than their competitors tend to dominate the global technology services economy. Data management software, as opposed to physical manufactured goods, are distributed and sold in the marketplace. The data is compiled in digital format, often in computer code and encrypted. Their factors of production are in the form of intellectual property rights that enhance the information resources most companies need to earn a profit.
The technology sector includes various well-known rivalries such as Apple, Inc, and Microsoft Systems or Salesforce and Netsuite CRM. Some tech companies such as Google are considered to hold a monopoly in the technology sector but on the other hand, segments of the Internet-related sector are considered a perfect competition environment for businesses. As a single product, the Internet, there are no restrictions on firms entering the market, all products offer essentially the same accessibility and overall prices in the Internet-related market are not disproportionally affected by any one buyer or seller. Due to the loss of net neutrality ( the principle that internet service providers must treat all internet communications equally), this freedom of accessibility to the Internet may soon change.
In a mixed economy, both capitalism and socialism can affect the types of competition in the marketplace as well as how, what, where, and for whom products are produced and sold. Government regulations can either improve or hinder competition on the internet, Internet providers can differentiate accessibility to their technology.
Another example of product differentiation on the internet is Facebook, an online social media platform. It differentiates itself from other social media sites using customized web applications and provides services,, tools and products to third-party developers allowing them to create their own applications using Facebook data.
No comments:
Post a Comment