Virtual Business

Knowledge Center

12manage is looking for contributors...

   

Description of a Virtual Business. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Virtual Business. Description.


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.


Virtual Business Forum
  Leadership Style in Virtual Business
Please, I need suggestions on workable leadership ...
     
 
  What is a Virtual Organisation / Virtual Work?
What constitutes virtual work / activity an...
     
 

Virtual Business Special Interest Group


Special Interest Group

 

Best Practices - Virtual Business Premium

Expert Tips - Virtual Business Premium

Resources - Virtual Business Premium

Organizational Structures: Principles, Types and DiferencesSign up

This presentation contains information about organ...
Usage (application): Organizational Structure, Organizational Design
 

Virtual Teams and Leading such TeamsSign up

Presentation about Virtual Teams and effective lea...
Usage (application): Team Management, Virtual Teams, Remote Teams, Virtual Leadership
 

Introduction to Network OrganizationsSign up

Presentation about Network Organizations. The pres...
Usage (application): Organizational Forms, Network Organization, Virtual Organization, Communities of Practice
 

How Businesses can Use Information Technology (IT) in Strategic WaysSign up

This presentation looks at Information Technology ...
Usage (application): Strategic Management, Information Technology
 

Managing Virtual Teams and Multicultural TeamsSign up

Presentation about leading virtual and multicultur...
Usage (application): Team Management, Virtual Teams, Leadership
 
 

News about Virtual BusinessSign up


     
 

Videos about Virtual BusinessSign up


     
 

Presentations about Virtual BusinessSign up


     
 

Books about Virtual BusinessSign up


     
 

More about Virtual BusinessSign up


     

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

Special Interest Group Leader

You here


 

Return to Management Hub: Change & Organization  |  Communication & Skills  |  Knowledge & Intangibles  |  Marketing  |  Strategy  |  Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Virtual Business summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 23-7-2018. All names of their owners.