Tuesday, June 24, 2014

Changing business models in the Internet Age(extrra)

In a world where everyone is connected via cyberspace and information is being exchanged at the speed of light, many companies decide to adopt a new business model. For example, while Encyclopedia Britannica still charges $1,395 for its twenty-two-volume set of books, the company sells far fewer physical books. Instead, the company puts the books’ contents on the World Wide Web, where information can be updated and accessed continuously. Users now pay a subscription fee to access the information over an extended period of time. The company has thus made the transition from selling a physical product to a buyer to providing the user access to aservice over time.

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