Your friend Boris is keen to start his own platform business. His aim is to create a ‘Deals’ platform – where experts from the company, will identify the best deals in the market on a variety of topics such as mobiles, broadband, games etc. and make these available to consumers who login to the platform using a unique id. It is more than just price comparison or aggregation as the platform will only display products that are on a deal or offer. Boris aims to generate value through advertising revenues, revenues from customer browsing and purchase data, and a premium service for customers who want more customized services. He has asked for your help to understand some of the underlying dynamics and look for other sources of revenue. a) According to Weill and Woerner (2013) what are the three key components of a digital business model? Use an example to explain what aspects of business would come under each component. b) Weill and Woerner argue that “A firm doesn’t need to be a leader in all three components”. What should Boris focus on and why?
Your friend Boris is keen to start his own platform business. His aim is to create a ‘Deals’ platform – where experts from the company, will identify the best deals in the market on a variety of topics such as mobiles, broadband, games etc. and make these available to consumers who login to the platform using a unique id. It is more than just price comparison or aggregation as the platform will only display products that are on a deal or offer.
Boris aims to generate value through advertising revenues, revenues from customer browsing and purchase data, and a premium service for customers who want more customized services. He has asked for your help to understand some of the underlying dynamics and look for other sources of revenue.
a) According to Weill and Woerner (2013) what are the three key components of a digital business model? Use an example to explain what aspects of business would come under each component.
b) Weill and Woerner argue that “A firm doesn’t need to be a leader in all three components”. What should Boris focus on and why?
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