Business Model In The Internet Under The Conditions Of Change

It is widely acknowledged that business model potentially provide a sustainable competitive advantage for the enterprises in Internet times. A successful enterprise must have a successful business model. With the changes in the external environment such as the accelerating growth of technology, market demand, and competitive pressure, enterprises must develop new business models so as to gain sustainable competitiveness for their survival and development.The relevance of a sound business model seeming to be undisputed, there is no consolidated knowledge considering various aspects of business models. So far the most important research on business model that have been investigated are in 6 perspectives, each focusing on diverse dimensions of its characteristics and components. Here we recognize a business model as the organization's core logic for creating value, which is holographic and systemic. It is composed of three closely related components which are business philosophy, operational mechanism and value of the enterprises. It is required to study the change of business model dynamically and systemically, and with a full absorption of management theory research methods as well.Having changed the competitive environment, Internet has also created new value opportunities for enterprises by raising the interest of business, information and cooperation. The realization of these values depends on changes of business philosophy and operational mechanism. To better exploit the new opportunities for value creation offered by Internet, the business philosophy has to be changed from two perspectives. On one hand, the value proposition should be redefined to maximize the customer value, which means the full understanding of customer, the improvement of the customer relationship management and customer service, the offering of customization product, the commitment to complete customer-oriented solutions, and the innovation of products and services. On the other hand, taking the affect of Internet into account, the competition strategy should be adjusted to reconstruct the core value business and change the basis of competition, provide unique costumer value for the increase of conversion cost, construct information value to increase market barriers, to make strategic decision according to the balance of power in the supply and demand sides.