The Impacts Of Internet On Business Models

8 Pages 1979 Words

A business model is a description of the activities that a company performs to generate revenue or other benefits, and the relationships, information, and product flows a company has with its customers, suppliers, and complementors (Change in business model). Some business models are quite simple. A company produces a good or service and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more complex. Broadcasting is a good example. Radio, and later television programming has been broadcast over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers (and their agencies), and listeners or viewers, who makes money and how much is not always clear at the outset (Diffley, 2002).

Firms are always competing one to another, and most business models continue to be amended over times, to maximize the use of their existing and new resources, minimize their operation costs while improving their performance and fulfilling customers’ ever changing demand to remain competitive in its market. Technology changes were one of the major drives of business model evolution as well as people’s daily life. From ancient printing technology to today’s telephone and computer technologies, people learn how to use them, and put them into businesses to create new opportunities, gain efficiencies and advantages. And yet, every new technology places new demands upon us and creates new forms of stress. We can't live with it, but we can't live without it.

But never in the history of the world has a technology been so widely accepted so quickly as the Internet. It is a tool of proven power and unimagined potential (Diffley, 2002, P.11). It connected PCs and their users from all over the world together. Since the debut of the Internet, it took it just fo...