Virtual Business

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What is a Virtual Business? Meaning.

A Virtual Business is a company operating with a very limited physical presence. Often these non-conventional organizations are built from scratch, relying much on the use of information and communication technology, in particular Internet technology (E-Business). But they can also be formed from an existing traditional firm through Outsourcing most or all of its functions, such as designing, manufacturing, marketing, selling its products and services. Outsourcing occurs when a company uses an outside firm to provide a necessary business function that might otherwise be done in-house. In its most advanced form, outsourcing makes it possible to build an entirely Virtual Company with only one single employee: the entrepreneur himself.

Typical advantages of Virtual Business Models over conventional companies include:

• Lower Information gathering and search costs.

• Lower negotiation and settlement costs.

• Lower inventory and building costs.

• Access to wider markets.

• Flexibility in sourcing inputs.

• Improved transaction automation and data mining capabilities.

• Ability to bypass intermediaries (Disintermediation).

• Lower menu costs enabling more rapid response to market changes.

• Ease of bundling complementary products.

• Ease of offering 7X24 access.

• No limitation on depth of information provided to potential customers.

Completely virtual businesses are relatively rare. However many firms have implemented its underlying logic at least partly to focus on activities that they are good at (Core Competence), or that contribute to their Competitive Advantage. Firms opting for a mixed business model are referred to as Bricks and Clicks companies.

Forum Forum about Virtual Businesses. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about Virtual Businesses Share your knowledge here (or ask a question)   🔥 NEW Leadership Style in Virtual Business Please, I need suggestions on workable leadership style in operating a virtual business.... 0   What is a Virtual Organisation / Virtual Work? What constitutes virtual work / activity and how do we feel that this concept could potentially affect the future of work for organisations and those who they employ?... 0

Information Sources Various sources of information regarding Virtual Businesses. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Organizational Structures: Principles, Types and Diferences Organizational Structure, Organizational Design This presentation contains information about organizational structures and designs includes the following sections: 1. ... Virtual Teams and Leading such Teams Team Management, Virtual Teams, Remote Teams, Virtual Leadership Presentation about Virtual Teams and effective leadership of such teams. The presentation includes the following section... Introduction to Network Organizations Organizational Forms, Network Organization, Virtual Organization, Communities of Practice Presentation about Network Organizations. The presentations explains its importance, its supporting factors and compares... How Businesses can Use Information Technology (IT) in Strategic Ways Strategic Management, Information Technology This presentation looks at Information Technology from a strategic point of view. In other words, it discusses in what w... Managing Virtual Teams and Multicultural Teams Team Management, Virtual Teams, Leadership Presentation about leading virtual and multicultural teams. The presentation includes the following sections: 1. Organi...

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Compare with: 4S Web Marketing Mix  |  Alliance Network  |  Value Chain  |  Strategic Alliance  |  Entrepreneurial Organization  |  Business Incubator  |  Twelve Principles of the Network Economy  |  Organization Chart

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This ends our Virtual Business summary and forum.