Other firms, however, will find themselves able to define new markets or enter markets that were previously closed to them. This presents far-reaching price and strategy implications for suppliers and buyers. We predict that as buyers and suppliers become more accustomed to a dynamic price environment, fixed prices will become less and less common. Firms that are able to offer non-replicable, unbundled or customised products will not face the same degree of competitive pressure to reduce prices. Digital information can be changed easily and inexpensively.
Suppliers can update prices in real time or have prices updated automatically.
Information costs Difficult to gather information on competitors' offerings and prices. Both businesses and customers can access a wealth of information over the Internet. Switching costs High Customers can click between companies in seconds to compare them. Customer loyalty can no longer be assumed. Barriers to entry May be high due to legal, technical, environmental or competitive reasons.