So, as a network grows, the value of being connected to it grows exponentially, while the cost per user remains the same or even reduces. While Metcalfe's Law has been applied to the Internet, it is also true of telephone systems. Gordon Moore first formulated Moore's Law in the early 1970s. There can be no doubt that the cycle of technology development and implementation is accelerating and that we are moving inexorably onward, out of the Industrial Age and into the Information Age. Globalisation ICT open up global markets and foster competition With the advent of information and communication technologies, the vision of perfect competition is becoming a reality.
Consumers can now find out the prices offered by all vendors for any product.
New markets have opened up, and prices have dropped. Competition is fostered by the increasing size of the market opened up by these technologies. Products with a high knowledge component generate higher returns and a greater growth potential. Competition and innovation go hand in hand. Products and processes can be swiftly imitated and competitive advantage can be swiftly eroded.