4. Internet has a big impact on firms and their information systems. Firms created new business models that were not possible before the internet. Select one those new business models and answer the following questions:
4.1. What was the original business model for that company before internet?
4.2. How does the Internet empower the new business model?
4.3. What role the information systems play in this?
4.4. What steps traditional competitors are taking to address this challenge?
4.5. Based on what you read, do you think the traditional model will survive?
What is your question about this huge assignment?
To answer these questions, we need to choose a specific new business model that was made possible by the internet. One example is the online marketplace model, which connects buyers and sellers through a digital platform. Let's use this as our example.
4.1. The original business model for a company before the internet, in the case of an online marketplace, might have been a traditional brick-and-mortar store or a physical marketplace where buyers and sellers interacted face-to-face.
4.2. The internet empowers the new business model of an online marketplace by providing a platform for buyers and sellers to connect virtually. It eliminates geographical limitations, expands the potential customer base, and allows for greater efficiency in matching supply and demand.
4.3. Information systems play a crucial role in supporting the operations and functionality of an online marketplace. These systems enable the creation of user accounts, product listings, secure payment processing, order tracking, and customer support. They also provide mechanisms for sellers and buyers to communicate, review and rate each other, and handle disputes.
4.4. Traditional competitors may take several steps to address the challenge posed by the online marketplace model. They might develop their own online platforms to reach a wider audience, offer convenient online ordering and delivery services, or partner with existing online marketplaces to expand their reach. They may also focus on enhancing the in-store experience by providing personalized services or unique products that cannot easily be replicated online.
4.5. Based on the impact of the new business model facilitated by the internet, many traditional models may face significant challenges to survive in their current form. However, each industry and market will have unique factors influencing their ability to adapt and compete. Some traditional models may successfully transform themselves by incorporating online elements and leveraging their existing strengths, while others may struggle to adjust and eventually disappear. Ultimately, the survival of the traditional model will depend on how successfully they adapt to the changing business landscape driven by the internet.