In the post-Industrial Economy, the concept of the business model is of equal, if not greater, importance than the concept of business strategy
“In the post-Industrial Economy, the concept of the business model is of equal, if not greater, importance than the concept of business strategy”
Abstract
This literature review examines in detail, the concept of the business model is of equal, if not greater, importance than the concept of business strategy in post-Industrial Economy. A study of the academic articles and examining the position taken by academic experts and practitioners on “Strategy” and “Business Model”. It is observed that there is a lot of overlap between these two terms. Our purpose in this literature review is to understand “What is strategy and business model” and to argue the question posed above.
Keywords: Business Strategy, Business Model, Business Innovations
Introduction
In recent years, the business had undergone a great transformation with the advent of Internet. The internet boom acted as a catalyst in mid 1990s for the emergence of e-business and virtual markets. The traditional business concepts started shifting towards more dynamic concepts. The increase in the number of e-business (Online) transactions at major websites (60,000 per day in 1999 compared to 29,000 in 1998) highlights the extraordinary growth and transformation of new business in global landscape (Amit and Zott, 2001). Amazon, e-bay are best examples of consumer-oriented business that captured public attention. This new economics of information precipitated changes in the structure of entire companies and in the ways companies compete. Evan and Wurster explained the situation quoting Encyclopedia Britannica as example. The editors viewed Encarta as merely a toy and failed to understand what their customers were really buying. If Britannica 's executives had written off their sales force, had built alliances with libraries and scientific journals and had built a Web site that had hot links directly to original sources and created a universal navigator to valuable information, they
Abstract
This literature review examines in detail, the concept of the business model is of equal, if not greater, importance than the concept of business strategy in post-Industrial Economy. A study of the academic articles and examining the position taken by academic experts and practitioners on “Strategy” and “Business Model”. It is observed that there is a lot of overlap between these two terms. Our purpose in this literature review is to understand “What is strategy and business model” and to argue the question posed above.
Keywords: Business Strategy, Business Model, Business Innovations
Introduction
In recent years, the business had undergone a great transformation with the advent of Internet. The internet boom acted as a catalyst in mid 1990s for the emergence of e-business and virtual markets. The traditional business concepts started shifting towards more dynamic concepts. The increase in the number of e-business (Online) transactions at major websites (60,000 per day in 1999 compared to 29,000 in 1998) highlights the extraordinary growth and transformation of new business in global landscape (Amit and Zott, 2001). Amazon, e-bay are best examples of consumer-oriented business that captured public attention. This new economics of information precipitated changes in the structure of entire companies and in the ways companies compete. Evan and Wurster explained the situation quoting Encyclopedia Britannica as example. The editors viewed Encarta as merely a toy and failed to understand what their customers were really buying. If Britannica 's executives had written off their sales force, had built alliances with libraries and scientific journals and had built a Web site that had hot links directly to original sources and created a universal navigator to valuable information, they
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