Value Creation and Value Capture Through Internet Business Models

Francesco Sandulli, Antonio Rodríguez-Duarte () and Daría C. Sánchez-Fernández
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Antonio Rodríguez-Duarte: Complutense University
Daría C. Sánchez-Fernández: Complutense University

A chapter in Handbook of Strategic e-Business Management, 2014, pp 83-108 from Springer

Abstract: Abstract Firms compete in online markets through business models that have not yet been studied in sufficient detail. First, this chapter contributes to the literature on Internet business models through the study of the main mechanisms for creating and capturing value in electronic markets. The chapter describes how the main mechanisms of value creation on the Internet are aggregation, efficiency and customization. This chapter also discusses how companies can capture value in online markets by increasing the switching costs for consumers or leveraging network effects. Second, the chapter sets out four broad categories of business model based on specific mechanisms of value creation and value capture: Internet Malls, Content Providers, Merchants and Connectors. Finally, the chapter reflects on the dynamic nature of Internet business models and how most online companies tend to adopt hybrid business models which are continuously evolving.

Keywords: Electronic markets; Network effects; Switching costs; Two-sided markets; Electronic commerce; Social network sites (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-3-642-39747-9_4

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