By Allan Afuah
Regardless of the Internet’s out of the ordinary impression on company and its succeed in throughout all sectors, no version has emerged for thoughtfully valuing businesses’ net efforts. furthermore, innovations for successfully competing during this surroundings are only commencing to materialize. This publication addresses either one of those severe features of the net and provides enterprise versions and methods for greater realizing this crucial phenomenon. within the phrases of the authors, ...The framework (presented the following) permits clients of the textual content to make extra knowledgeable theory-based arguments as to how profitable an Internet-based company is perhaps, how a lot it'd be worthy, and the relative advantages of formulating and imposing an online method for a longtime firm.”
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Additional info for Internet Business Models and Strategies: Text and Cases
11. Hardware Suppliers The hardware category comprises three interrelated areas: communications equipment manufacturers, computer equipment manufacturers, and hardware component manufacturers. The communications equipment manufacturers are the producers of the various kinds of routers and other digital switches. Cisco Systems and Lucent Technologies (formerly part of AT&T) dominate this industry, although 3Com is also well known for its communications equipment. Motorola also gains much of its revenue from communications equipment, cellular telephones, and semiconductors.
Fewer components can mean lower cost and better reliability. Moreover, Daimler-Chrysler engineers located in Europe and the United States developing a new car do not have to travel to Detroit or Stuttgart. They can use the Internet or intranet to coordinate their activities. The properties of time moderation and universality suggest that these engineers do not have to work on the car at the same time either. Engineers working on a car today can share in the knowledge accumulated in previous projects and stored in the firm’s databases that can be made available over an intranet.
More important, the developer of the product has access to this critical information. Customer user groups, in general, can be important resources for firms. For example, users of Cisco products learned so much from each other that they did not have to ask many questions of Cisco about how to use the products in their own system. This not only freed Cisco applications engineers to develop more products (instead of hand-holding customers), but also meant happier customers who wanted more Cisco products.