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Technology often drives sectors towards commoditization

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We have seen that technology often drives sectors towards commoditization, modularization and easier entry. However, in many sectors such as music delivery, retail banking, search, and basic web services, we do not see a large number of firms in the market. Instead the initial stage of entry is often followed by market consolidation, and the eventual survival of a few very large firms. What are the reasons for this pattern?

Reference no: EM133442891

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