Definition of E-Business Based on Wirtz

Roselyn Lauwsen 2301857065

Definition of E-Business Based on Wirtz

Nowadays business models are of interest and concern especially if they are associated with the rise of an internet-based economy (Wirtz 2000c; Chesbrough 2010). The success of a company’s activities is largely attributed to the management of business models. The increasing importance of business model approaches is primarily due to major changes in the competitive environment over the past two decades, particularly in the digital market. The online marketplace has produced many new business models that are the foundation of companies such as Amazon, Google, Facebook, and eBay. del is simply a business model that has been put into practice. A business concept comprises four major components: Core Strategy, StrategicResources, Between 1990 and 1995, the increased practical significance of information technology led to increased interest in business models. The term business model is increasingly being used strategically in addition to terms such as revenue model or relationship management. For companies referred to as the new economy and its investors, the business model is usually seen as a central aspect of a company. An increase in significance to the concept of business models related to the new economy was also seen through press coverage in economic magazines at the time. The term business model refers to the depiction of a company’s internal production and incentive system. A business model is a simplified and combined representation of the relevant activities of a company. It also explains how a marketable information, product and/or service is generated through the company’s value-added component. In addition to the value creation architecture, strategic components as well as customers and markets are considered to realize the main objective of generating and maintaining a competitive advantage. A business model can show in a very simple and aggregate form which resources play a role in the company and how internal processes in creating goods and services and turn the resources at our disposal into an information, product, and/or service that can be offered to customers. Therefore, the business model reveals the combination of factors of production that must be used to implement the company’s strategy and the functions of the actors involved (wirtz, 2000c). Wirtz explicitly describes a business model as a representation of a company’s production and performance systems. Wirtz uses a business model that presents the complex relationships that exist in a company in a clear way. By consistently analyzing the different partial models of the business model, a company can better assess the relevant competitors and particularly their value proposition to the customers. If this analysis reveals, for example, a competitor’s weaknesses within individual partial models, a company can decide to become particularly involved in these partial models in order to attract new customers. This type of new market positioning or production of goods and services can change whole industries and generate great competitive advantages (2002). In recent years, the business model approach has become an integrated management concept. Successful theoretical application is directly reflected in the success of a running business. Business models allow managers to focus on important aspects of their responsibilities. That way, a well-structured business model can increase competitive advantage and can also create business success in the long run. If we are consistent in analyzing different models of business models, companies can better assess relevant competitors and in particular the proportion of their value to customers.

Reference

Wirtz, B., pistoia, a., ullrich, s., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives, 49(1).