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New business models and new competition

dr Artur Milecki

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The classic and well-known methods of competition - such as price (low cost), distinguishing themselves with innovative products or above-average quality, as well as the use of new technologies - are and will be important as sources of advantage over competitors. However, these factors are no longer sufficient to succeed.


Many products - despite the fact that they come from different, competitive companies - are in fact no different from each other. Bank, airline and multimedia services in their industries respond to the same needs only by similar or different methods and resources. The method of meeting needs is specific to a particular organization and is called the logic of running a business or a business model. It is the innovation of business models that determine the success of a company in the modern world.


The successes of such global giants as Amazon, iStore, Airbnb or Spotify have been decided by innovative business models, and not by the popularity of products provided by these companies. How is this possible? All thanks to the unique "customer experience" that these companies have provided to their clients, providing them with quite ordinary value in an innovative way. However, they would not do it without creating the so-called a digital business model with huge growth potential.


Potents in their industries have one thing in common: exploiting the potential of digitization. Skeptics will say that digitization concerns only selected industries and products created in large scale on already developed markets. It is a calming but illusive translation. Demographic and technological trends clearly indicate that digitization causes changes, leading not only to the redefinition of all industries but also to the emergence of new ones. In 2015, the World Center for Digital Business Transformation (Global Center for Digital Business Transformation) presented a report according to which in the next few years, the digital revolution will drive around 40% of companies currently having a strong and stable market position. What's more, the digitization not only changes the industries but also more and more blurring the boundaries between them. Similarly, the boundaries between entities creating a traditional value-added chain for a given industry are disappearing (eg producer-distributor - store - customer). This trend will be strengthened by the industry's development towards Industry 4.0, already today there are, for example, companies that study precisely the eyesight, produce individual lenses and deliver to the end customer, the whole process closes within 48 hours.


The digitally driven business models are constantly - and at first also imperceptibly - changing the way of competing and the balance of power on the market. There will be new players who, thanks to completely new business models, enter "organized" markets for years. The pace of these changes is, of course, different - there are industries in which these changes are already taking place; there are also those that are still waiting for the revolution.


The race in the new system of market forces will be won by those who first understand that digitization affects all industries, including those seemingly non-technological. Ultimately, there is a human being everywhere - whether as a client or as an employee - whose customs and relations with digital technology are not only constantly ongoing but also change

New business models and new competition

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