Digital Economic Essay Example | Topics and Well Written Essays - 2500 words

Digital Economic - Essay Examplecompetition is a situationor that is brought about by the circumstance that there are many sellers, who in turn make the firms that are available to be price takers. It also includes the sale of homogenous products. Because of this, as is the circumstance that is presented by Thomson, there are chances of both easy entry and exit. However, it is involved with the perfect knowledge about the product, as well as adequate information about their pricing.The speculations were raised because, with the explosive growth of the internet, it was thought that there would be the availability of perfect information on the prices and products at the fingertips of most of those involved. With this, the consumers would be advance placed to get the best deals. Thus, it was perceived that it would be a brave world whereby the profit margins of retailers would be competed away and they would be forced to price at a cost. They thought that the internet would reshape t he world of commerce by dominating most of the businesses in existence within the established trading environments. As such, it would in the long run attain a position of dominion within the global market.However, the current trends in internet retailing have revealed that this has not happened as the earlier commentators have realized that most of their speculations were rather overblown since the high street market has weathered the storm. This is mainly because the retailers who are taking share in the activities are not making their own custom cannibal the marketplace is not being fully dominated by the virtual merchants and the fact that the high streets have not been completely put out of business. Thus, most of the predictions that were made at the dawn of the internet era have not adopt to reality. This is in spite of the fact that some of speculations have come to pass. They include the vital role that is currently being played by the electronic intermediaries, specially on the aspect of making one-on-one marketing become a