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New Business Models And Strategies For Internet Economy-Case Study

First case assignment is from Chapter 3. Question 8 on page 78 is:- Some firms choose to generate revenue by selling or licensing their proprietary software. Other choose an open systems approach and distribute it free of charge. What do you think drives this decision?And Question 9 is:- According to your textbook, eToys.com suggests that multichannel retailers are more likely to experience long-run success in the Internet economy than pure-play Internet retailers. Take a position on this conjecture and defend your positions. Your answers should be detailed. The case is due on July 24. Let me know if you have questionsQuestion 8In today’s new Internet economy, companies have a variety of business models that they can implement to generate revenue. Dell, for example, chooses to partake in reaching clients through a manufacturer (direct) model that eliminates the middleman and sells directly to the consumer through massive customization. Dell’s products can be purchased, licensed, syndicated, or leased. What drives their decision to sell or license their products is their need to remain competitive in an already saturated market. They do this by closely guarding their proprietary systems and any other sort ofintellectual property. Salesforce is a cloud based company that sells and licenses their content so that their clients can avoid investing and sustaining their own software.

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