The use of the internet in markets

computing (IT)- essay by matthew foote Will the internet keep the U.K competitive in a world market, in terms of industry? Recently there has been emphasis for electronic business. Judging by IBM’s recent advertising campaign you would be forgiven for thinking that launching a company website leads to instant profits. IBM ‘s portrayal of a grandmother taking her olive oil business from rural Greece into global markets neatly demonstrates the potential of …

…that by using the internet could lower production costs i.e. no need for CD’s and packaging when supplying music, it can easily be downloaded. It can used to cut out transport costs and communication costs. Also advertising on the internet is cheaper then any other medium - this would increase demand without much expense on advertising costs. Again this could lead to companies making a larger profit even it they lower their prices.