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Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, which of the following would Akamai likely do? a. Do nothing since it is the market leader b. Exit the industry c. Lower its prices d. Raise its prices

Answer :

Answer:

c. Lower its prices

Explanation:

Although the services of Akamai Technologies are dominant, but is is still dependent on the market. This clearly states that it is not the only one who can control the prices of the content, since it is dependent it has t keep pricing according to the market.

Accordingly, if the prices of competitors fall the prices for the concerned Akamai Technologies will also have to be decreased, in order to maintain the market share.

This is the best technique which it should follow in order to still be dominant in the market.

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