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, what would be Akamai's likely response?
A) Raise its prices
B) Do nothing since it is the market leader
C) Exit the industry
D) Lower its prices

Question

Quizplus · Accepted Answer

Akamai would likely respond by lowering its prices in order to remain competitive and retain its market share. This is a common strategy in highly competitive markets where pricing is a major factor in customer decision-making. Akamai would also need to consider investing in new technologies and services to differentiate itself from its rivals and maintain its competitive advantage over time.

Akamai Technologies Is a Dominant Player in the Content Delivery