A business model traditionally describes the way a company makes money. Yet, often we use digital services for free (e.g. Facebook, Google or WhatsApp) or for what seems to be a relatively minor price (e.g. Blablacar, Airbnb, and Amazon). Digital business models are different to traditional business models.
The objective of this book is to detail and explain the key challenges and characteristics of digital natives. These companies can be a source of inspiration for traditional bricks and mortar companies that aim to go digital and/or revamp their traditional business model. Most businesses rely on some form of digital technology for their marketing communication, customer relationship management, supply chain or distribution, yet digital transformation entails a complete reassessment of way value is created and capture. Digital Business Models details the successful customer acquisition tactics and the development of business eco-system by digital players.
Using the relevant academic and managerial body of knowledge, the authors define the concepts, describe the various ways digital businesses create and capture value and propose some useful tools for managers to analyse a situation, formulate or implement a strategy.
The chapters (multi-sided platforms, digital merchants, subscription based model, freemium, social media and sharing economy) do not correspond to mutually exclusive categories but each section encapsulates a key feature of digital business types. Each chapter is illustrated with several examples and the appendix comprises three full-length case studies.
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