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1. Cost of producing teaching : The breeding mart has a circumscribed structure, because once the first copy is made, it woos almost zipper to reproduce it. It means there are large icy costs of crossingion and small variable costs of reproduction. That leads to economies of scale. Basically, the of import component of the fixed costs is sunk costs, which are not recoverable after stopping the production. In addition, marketing and onward motion costs are also very high for information goods because there is more competition to mature the consumers attention. On the contrary, reproducing costs do not increase, whatever the number of copies. Those particularities can great marketing opportunities. 2. Cost and competition : The information market does not look like any other perfective aspect belligerent market with many buyers and sellers, generic products and price competition. nevertheless commoditized information is a huge threat. It is always possible to see another information producer who can sell the similar product cheaper and still make profit. Once other squares invite sunk the costs needed to sell a product, competitive forces move the price toward marginal cost which is the cost of producing an superfluous copy.

Fortunately, two sustainable market structures are available for information goods to survive in this competitive environment: 1.The dominant firm model, where you probably dont have the best product but you have cost advantages 2.The divergentiated product model, where opposite firms produce the same kind of information but with different varieties. This structure is the most common one (films, television…) cogitate with these structures, there are two principles of competitive strategy (depending on the type of industry you are): differentiate your product and achieve cost leadership. The first one means you have to do whatever you can to make your product different compared to the others. Its even possible for information commodities thanks to... If you want to get a full essay, order it on our website: Orderessay

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