Strategizing in the Digital World: Aligning Business Model, Brand and Technology

Strategizing in the Digital World: Aligning Business Model, Brand and Technology

Yvonne Lee (University of Technology, Sydney, Australia) and Martin Kornberger (University of Technology, Sydney, Australia & University of St Andrews, Scotland)
DOI: 10.4018/978-1-60566-220-6.ch007
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In the rapidly changing digital marketplace, firms increasingly try to look for new ways to acquire, engage, and retain their consumers. In doing so, they hope to enhance their ability to monitor and predict consumer expression and affiliation while relying on consumers to spread the word about a product. The current state of the industry and enabling technologies that shape development is transitioning from an inexpensive medium for advertising, marketing, and customer support, to a common platform for transactions and business applications for information, communication, commerce, and entertainment as one large consolidated industry. More consumers are accessing the internet using multiple devices and over multiple communications networks, along with changing behavior and consumer patterns. With the evolution of digital media, Web technologies and consumer patterns changing rapidly, we see strategizing in the digital world of new media as essential. It needs to be addressed and understood holistically, including its impact on existing offline business models, branding practices, and the shape of future business models.
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Not all researchers in the field of strategy have realized the importance of the digital world for strategy. For instance, Porter (2001) suggested “the winners will be those that view the Internet as a complement to, not a cannibal of, traditional ways of competing” (p.63) to reconfigure existing industries. According to Porter, gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. As all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. It is from this school of thought that we wish to dispel.

The Internet has moved beyond being complimentary and forms of “cannibalism” (to use Porter’s words) are seen as new ways to compete. New markets are being created that accelerate the deterioration of traditional business models through revolutionary price, efficiency, information and new distribution platforms. Online business models and start ups that add significant value have been known to shrink existing markets through disruptive innovation in their business model and impact they have to existing competitors playing in the same space. A good example includes an online real estate company, redfin, that provides real estate search and brokerage service. It was founded by David Eraker in Seattle by combining online real estate search and access to live agents. Unlike traditional brokerage firms that license their name to independent agents redfin employs its agents so it can better control customer satisfaction. Redfin claims to save homebuyers on average $10,000 by reimbursing roughly 2/3 of the buy-side real estate fee directly on closing. Redfin also pays bonuses to agents when they receive high customer satisfaction. Trulia, Terabitz, Zillow and, their competitors currently do not combine online real estate search and brokerage services. On their site, Redfin combines MLS listing information with historical data into a single map powered by Microsoft Virtual Earth. You can search for homes by neighborhood, city or MLS number, or you can refine results using detailed parameters like price, beds etc. As of July 2007, users could look for homes in Washington, D.C. area, including Central Maryland and Northern Virginia, Greater Boston, the San Francisco Bay Area, Greater Seattle and Southern California, including Los Angeles, Orange County, the Inland Empire and San Diego. This is a great example of a business model that shrinks existing markets through investing in technology focused on doing its best to completely remove real estate agents and brokers (and their fees) from at least half of a home sale. The value adding for users is that when you buy a home, they reimburse 2/3 of the broker fee and 1/3 kept for Redfin.

Complete Chapter List

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Table of Contents
Jeffrey Soar
Varuna Godara
Chapter 1
Varuna Godara
Pervasive computing is trying to make the dreams of the science fiction writers come true—where you think of some type of convenience and you have... Sample PDF
Pervasive Computing: A Conceptual Framework
Chapter 2
Varuna Godara
The need for more and more flexibility (in terms of time and location) in business operations, contextbased services, decentralization of business... Sample PDF
Pervasive Business Infrastructure: The Network Technologies, Routing and Security Issues
Chapter 3
Deo Prakash Vidyarthi
The proliferation of the capable mobile devices has given the opportunity to utilize these devices for various purposes. The mobile devices being... Sample PDF
Computational Mobile Grid: A Computing Infrastructure on Mobile Devices
Chapter 4
Mark J.W. Lee
This chapter investigates the use of mobile digital technologies for learning, or mobile learning (mlearning), across a variety of education and... Sample PDF
Mobile and Pervasive Technology in Education and Training: Potential and Possibilities, Problems and Pitfalls
Chapter 5
Gaya Prasad
Microorganisms are ubiquitous in their presence. They are present in air, soil, water, and all kinds of living creatures. Varieties of microbes have... Sample PDF
Ubiquitous Computing for Microbial Forensics and Bioterrorism
Chapter 6
Jonathan G.M. Pratt
This chapter presents the major findings of case study research investigating uncritical assessment of an institution-wide learning management... Sample PDF
Falling Behind: A Case Study in Uncritical Assessment
Chapter 7
Yvonne Lee, Martin Kornberger
In the rapidly changing digital marketplace, firms increasingly try to look for new ways to acquire, engage, and retain their consumers. In doing... Sample PDF
Strategizing in the Digital World: Aligning Business Model, Brand and Technology
Chapter 8
Helena Halas, Tomaž Klobucar
This chapter explores the influence of pervasive computing on companies and their businesses, with the main stress on business models. The role of... Sample PDF
Business Models and Organizational Processes Changes
Chapter 9
Te Fu Chen
To date, identifying barriers and critical success factors (CSFs) and integrating business model in implementing e-business for SMEs, have not been... Sample PDF
The Critical Success Factors and Integrated Model for Implementing E-Business in Taiwan's SMEs
Chapter 10
Lawan Ahmed Mohammed
The change in physical structures of computing facilities into small and portable devices, or even wearable computers, has enhanced ubiquitous... Sample PDF
Security Issues in Pervasive Computing
Chapter 11
Grace Li
Pervasive computing and communications is emerging rapidly as an exciting new paradigm and discipline to provide computing and communication... Sample PDF
Deciphering Pervasive Computing: A Study of Jurisdiction, E-Fraud and Privacy in Pervasive Computing Environment
Chapter 12
Reima Suomi, Tuomas Aho, Tom Björkroth, Aki Koponen
Accurate identification of individuals is a cornerstone of any modern society. Without identification, we cannot recognize the parties of different... Sample PDF
Biometrical Identification as a Challenge for Legislation: The Finnish Case
Chapter 13
Antony Glambedakis
This chapter sets out to inform the reader about the impact of pervasive computers in aviation passenger risk profiling. First is an overview of the... Sample PDF
Pervasive Computers in Aviation Passenger Risk Profiling
Chapter 14
Penny Duquenoy, Oliver K. Burmeister
There is a growing concern both publicly and professionally surrounding the implementation of Information and Communication Technologies (ICT) and... Sample PDF
Ethical Issues and Pervasive Computing
Chapter 15
Phillip W.J. Brook
This chapter explores the implications of knowledge sharing in an era of pervasive computing, and concludes that, perhaps counter-intuitively... Sample PDF
Knowledge Sharing and Pervasive Computing: The Need for Trust and a Sense of History
Chapter 16
Patrice Braun
In view of the fact that women are playing an increasingly important role in the global economy, this chapter examines business skilling in the... Sample PDF
Advancing Women in the Digital Economy: eLearning Opportunities for Meta-Competency Skilling
Chapter 17
B.K. Mangaraj, Upali Aparajita
The future of pervasive computers largely depends upon culture studies of human societies. This forms a challenging field of social research because... Sample PDF
Cultural Dimension in the Future of Pervasive Computing
Chapter 18
Genevieve Watson
Pervasive computers cover many areas of both our working and personal lives. This chapter investigates this phenomenon through the human factors... Sample PDF
Outline of the Human Factor Elements Evident with Pervasive Computers
Chapter 19
Kalawati Malik
This chapter analyses the impact of computer and video games on the development of children. First introductory part of this chapter informs its... Sample PDF
Impact of Computer and Video Games on the Development of Children
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