Question

In your discussion posting, answer the following questions and be sure to support with data and other sources, correctly cited by APA, to bolster your argument or point of view.

List three businesses that can exist today because of the World Wide Web that could not have existed prior to this technological advancement.

How has the World Wide Web allowed the supporting, establishment and functioning of these businesses?

Do you think the WWW has made it easier or more difficult to start new businesses?

Explain Do you think that the WWW has made it easier or more difficult for companies to establish themselves as monopolies? Explain? Share an example and identify and discuss the type of price discrimination.

Answer 1

SOLUTON :-

1. Business which exists because of boom in world wide web are

1. Social media companies like Facebook, twitter etc.
2. Hotel booking companies like Airbnb
3. E-commerce retail business like Amazon
4. Online only banking companies like Ally bank.

2. World wide web has supported these companies by connecting customers throughout the world with them. World wide web provides cost effective way of scaling up business with customer which results in increase of revenue. World wide web also helps in connecting various units of the company which are located in different region to function effectively.
3. World wide web has made starting new business easier as initial investment to start a business is less in internet. World wide web also helps in attracting targeted audience in cost effective way.
4. I thing world wide web has made company difficult to establish themselves as monopoly. This is because it is easier to start online business and hence naturally would have high competition.
5. The type of price discrimination

1. First degree price discrimination: In this type of price discrimination, company could accurately find what each customer are willing to pay for product or service and sell product at exact same price. Example: In car industry, company would be largely knowing price point where customer would buy.
2. Second degree price discrimination: In this type of price discrimination, company would not know any information on potential buyer. Here company would price product differently based on preference of various group of people. Example: this type of strategy is used by retailers like Sam’s club where customers receive discount on bulk purchase.
3. Third degree price discrimination: In this type of price discrimination, company price products differently based on unique demography of subset of customer base like students, doctors et Example: This type of strategy is seen in sectors like amusement parks where entry ticket is different for different demography.