e-Business Models and Strategies

Below you will find my articles on e-Business Models and Strategies.


Business Models of Internet Companies and Types of Goods Offered

Is Facebook a public good? Is Wikipedia one? This kind of questions led me to writing an article in which I present the relations between the business models of internet companies operating in the B2C market (online vendors, e-service providers, content providers, multi-sided platforms, community provider) and the types of goods they offer (i.e. private, club, common, and public goods). The analysis shows that internet companies provide all four types of goods distinguished in the theory of economics.

See more: T. Doligalski, Business Models of Internet Companies and Types of Goods Offered,  paper accepted for the 2nd Business Model Conference on 6-7 June 2018 in Florence.

 

Value Creation in e-Business as a Driver of Financial Perfomance: Investigating Business Models of Polish Internet Companies

This study investigates the relationship between the ways of creating value in e-business and the level of company profitability. The theoretical basis for the study was the model elaborated by Amit and Zott. The analysis was carried out on the set of data that was collected in the questionnaire survey conducted among managers of 150 companies from the group of the largest online retailers and e-service providers. Logistic regression was used to determine the statistically significant predictors of the operating profit indicator.

The research shows that out of the four components of the Amit and Zott model only the complementarity was closely linked to improvement in financial performance. The next two items – customer lock-in and innovation – did not have predictive power, while the fourth item (customer efficiency) was negatively correlated with the financial result. The research described above show that it is difficult to establish a universal set of value-creating factors in e-business.

See more: P. Zaborek, T. Doligalski, S. Sysko-Romańczuk, Value Creation in e-Business as a Driver of Financial Perfomance: Investigating Business Models of Polish Internet Companies​, “Research on Enterprise in Modern Economy – theory and practice”, 2016 | nr 4 | 101–113.


Strategies of Value Proposition on the Internet

In view of the inadequacy of traditional value-for-customer typology in the context of online operations, it is justified to ask how companies build customer value (or value proposition) with the use of the Internet. The article is an attempt to answer this question The article outlines five strategies that can also be perceived as five customer value dimensions. These are: efficiency strategy, free value, complex solution, unique value and value co-creation.

The above strategies were used to segment Polish online companies for the purposes of a research carried out in 2012, described in the article entitled: Value proposition and business performance: segmentation of Polish online companies. Statistical analysis revealed that the level of application of particular strategies can be operationalised using single hidden variables estimated on the basis of the Likert scale, containing the determinants of the strategies employed. The outlined strategies are therefore one-dimensional constructs. Moreover, the results of factor analysis suggest that the hidden variables for the strategies are uncorrelated, which points to a possibility of independent development of individual strategies by enterprises.

See more: T. Doligalski, Strategies of Value Proposition on the Internet, „Perspectives on Innovations, Economics & Business”, Volume 5, Issue 2, 2010.

Value proposition and firm performance: segmentation of Polish online companies

The main aim of the next study was to perform a segmentation of companies by value proposition. The segmentation research drew from previously formulated strategies (see Strategies of Value Proposition on the Internet. Therefore, this article could be included in the product and market stream. Nevertheless, due to numerous references to business models, this article has been qualified as belonging to this stream. As a result of the segmentation procedure, five segments of online businesses were identified: unique solution providers, specialized juniors, comprehensive seniors, productivity facilitators and typical salespeople.  The segmentation of online companies developed through research was a prerequisite for conducting qualitative research among companies representing selected segments, as described in Business Models and Growth Modes. Qualitative Research of Polish Online Companies. These studies show that companies show similarities in terms of the following segmentation criteria: contribution to customer, offer breadth, and differences in terms of content management and customer value creation. A typical growth path model assumes expansion to foreign markets after obtaining a certain scale of sales in the domestic market.

See more: T. Doligalski, T., Zaborek, P. and Sysko-Romańczuk, S. (2015) Value proposition and firm performance: segmentation of Polish online companies​, International Journal of Business Performance Management, Vol. 16, Nos. 2/3, pp.133–148.


Doligalski, Conceptual Model of Internet-Based Customer Value Management, [in:] T. Doligalski, Internet-based Customer Value Management. Developing Customer Relationships Online, Springer, Heidelberg 2015.

In the third chapter of the monograph Internet-based Customer Value Management  I presented my own model of Internet-based customer value management. By means of the article I tried to fill the theoretical gap related to actions aimed at developing online customer relations in order to increase customer value and translating into increasing company value.  In this model, reductionist perception of customer value management through the prism of measurement and maximisation was extended to include aspects related to management based on customer value and the use of the concept of value exchange to describe customer relationships with the company. It is due to the specific nature of the Internet, perceived as an environment for customer relation development, in which the role non-material values delivered to companies by customers is much bigger than in traditional non-Internet relations. The model provides a holistic description of customer relationships – from customer needs, through resources and expertise, value communication, and customer segmentation, to corporate value.  The model of Internet-Based Customer Value Management was elaborated for a couple of years. I presented it in a number of publications, differing not only in terms of research maturity, but also the application context. In the aforementioned chapter, the model is presented in a universal sense, without specifying the sector or type of enterprise.
T. Doligalski, Internet-based Customer Value Management. Developing Customer Relationships Online, Springer , Heilderberg 2015.

 

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