Web 2.0 Application on the Internet - Essay Example

One of the major advantages of web 2.0 is that it enhances the flow of information from different users as compared to previous technology where information is from one source. Another advantage is the low cost of communication across the world. A major disadvantage is over-dependence on the internet which is not available all the time. It can also lead to the loss of crucial data in case the computer crashes (University of Phoenix, 2011).

The key impact of web 2.0 on business is that it is a marketing tool that is cheaper compared to conventional ways of marketing thus low operational cost and increase in revenue. It provides a platform where the organization interacts with its clients, prospects, service providers, and suppliers. Based on the increased use of web 2.0, firms can create a strong connection with various stakeholders regardless of their destinations. In this way, companies can regularly update all the parties concerned on the progress of their investment. As a result, the technology has led to the expansion of companies globally as well as the enhancement of stakeholders' trust and loyalty towards their companies.