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Impact of the Internet on market structure, The

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Author Info
Cassiman, Bruno () (IESE Business School)
Sieber, Sandra () (IESE Business School)
Abstract

The arrival of the Internet offers new opportunities for value creation. The new technology simultaneously affects demand and cost structures, leading to a radical transformation of existing market structures. As a result, appropriation of any value created has become more challenging. Furthermore, as the Internet impacts industries in several ways simultaneously, we find that simply analyzing the effect of the Internet on pricing behavior and price dispersion misses the point that whole industries are being transformed, which clearly affects the pricing power and possibilities of individual firms. In this paper we provide a conceptual model for analyzing the different elements within the dynamics of industry transformation, and for understanding the impact of the Internet on market structure. We illustrate the different concepts with real-life examples.

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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/467.

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Length: 21 pages
Date of creation: 14 Jul 2002
Date of revision:
Handle: RePEc:ebg:iesewp:d-0467

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research
Keywords: Internet; value creation; pricing;

Find related papers by JEL classification:
M19 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Other

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  1. Sieber, Sandra & Valor, Josep, 2002. "Market bundling strategies in the horizontal portal industry," IESE Research Papers D/480, IESE Business School. [Downloadable!]
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