Market segmentation strategy in internet market

This paper presents a model to describe the competitive dynamics of web sites on the WWW market and analyze the stability of the model which is composed of one powerful site and two small sites. One of the most important results that emerge from this simple model is that strong competition among websites does not necessarily lead to the demise of the small website on the WWW market. From the stability analysis of the model, we obtain a series of conditions in which small sites can obtain competitive advantages by using the market segmentation strategy.