This paper aims to analyze the dynamics of market share of different strategic groups that are part of the internet agencies industry in Brazil as well as the changes due to modifications in its critical variables such as price, advertising and technology investment, and the availability of qualified human resources. For that reason the method of computer simulation, using system dynamics, was adopted. The adoption of this technique allowed identifying non-trivial patterns, especially the ones related to the analyses of the changes in the degree of differentiation between the different strategic groups.
Internet; Software industry; System dynamics; Differentiated bertrand
