Rather, they will moderate their production to meet demand. Barriers to entry for a given market will protect existing sellers, via patents, cost of entry, market share, consumer brands, and the like. Companies which enter a market presume a limited number of generally predictable competitors. They can also assume a certain predictability, time lag, and cyclical behavior of change in their market. The economics of the web are drastically different.
Every consumer is potentially a manufacturer of information.
Barriers to entry are extremely low. The explosive growth of the web and the Internet defies most attempts to apply predictive planning. Those who like to think in terms of 5 year plans might better seek careers as archeologists rather than try to cope with the dynamics of the web. The web will eventually affect companies which are not currently active on it. The entire middle layer between consumers and sellers may be affected.