A study on core competences for internet business through classifying business models

Abstract

Internet has many aspects that change business environments. The Internet brings about many changes of industrial competition and customer lifestyle. Also entry barrier becomes lower and personalized communication enforces customer loyalty to be important. In this situation, companies are concerned with using Internet effectively. However, previous studies on Internet business are focused on suggestions though case studies. Fierce competition circumstances drive Internet business firms to optimize their management. The strategic approaches are required to study for those Internet business firms. Current classifying methods of Internet business are fit to examine current business models and develop new business models. However these methods are not suitable for strategic suggestions. Now a new method is needed to suggest strategies for Internet firms. This study is made up of four points. First, Internet business is classified for strategic management approach in this study. Second, this study develops a performance model and analyzes the correlation between management factors and performances. Third, a desirable Internet business model is suggested. Fourth, meaningful strategies are suggested for Internet business firms. The total of 59 samples are classified into four groups based on the factor scores generated by factor analysis. ▷표삽입◁ (원문을 참조하세요) As a result of this study, firms in cluster 3(customer centered cluster) reflect characteristics of Internet business well. Also general management and maketing strategies operate well. Hence in this study it is proposed that firms in cluster I and cluster 2 should move to the range of cluster 3. And core competences are extracted through the correlation analysis for Internet business. ▷표삽입◁ (원문을 참조하세요) Internet firms are expected to obtain the establishment of strategies through this study.