A study on extracting competitive advantages & priority from the models of internet business

Abstract

Recently, Internet has made an explosive progress in electronic commerce. And the increasing growth of Internet is known as The Third Revolution and The Digital Revolution compared to the Industrial Revolution. Through the Internet, the customer can easily compare competitors`` price for the same goods and services. These situations might cause for customer to increase price sensitivity and become the more cost transparency. Thus, the increasing of cost transparency became weakened risk premium of enterprise and brand loyalty. The convenience of purchase and the increasing of cost transparency simultaneously had an influence to become lower transition costs. The corporate could measure the custom``s reservation price in real-time. The price can be easily changed in real-time as the customer``s reservation price. And, the construction of the database results in reduction of the menu cost. Thus the supplier would be able to obtain more the consumer surplus than the past. Transaction costs for the company became lower. So, these might be increased the company``s competitiveness. After all, the present situation leads to change from market similarly to the perfect competitive market. So, it is need systematically to study of competitive advantages and these priorities in the Internet business. Through this research, the results will be used as a guide for strategy planning and M$\amp$A. In this paper, the characteristics and the importance of Internet business were extracted through the exploring literature and brain-storming. It is described those as variables of competitive advantages. The classifying of Internet business models was summarized up and grasped the merits and demerits in the classified models. So, the model was chosen as criteria, such as the object of this research and re-defined Internet business, etc. In other words, these variables are summed up through the first questionnaire. (Verified the importance of variables: extracted comp...