Digital Business Management Essay Example | Topics and Well Written Essays - 2500 words

Digital Business Management - Essay Example The firm that is analyzed in the paper is Prada Group, a retail store operating in Milan Italy, which started operating way back in 1913 by Mario Prada. Prada is a luxury store which sells leather hand bags, leather accessories, travelling trunks, luxury accessories and beauty cases. It is because of the designed goods which are handcrafted with fine materials and through sophisticated techniques, the store rapidly grew to be the shopping point for most of the European aristocrats and the elegant members of haute bourgeoisie in Europe. Prada is an official supplier of the Italian Royal family and has been serving since 1919. The turning point came when Miuccia Prada, granddaughter of Mario launched a partnership with Tuscan business man, Patrizio Bertelli. The partnership created a new era with creativity and new business ideas. In 1977, Bertelli set up I.P.I spa in order to consolidate the production and in the year 2003 I.P.I spa was merged with Prada spa. It opened up a new store in 1983 in the prestigious Via Della Spiga in Milan. A new brand named Miu Miu was launched in the year 1993. In the year 2003 the store entered into a ten year licensing agreement with the Italian eyewear Luxottica, one of the leaders in eyewear industry. In the same year Prada went into joint venture with Spanish cosmetic PUIG beauty and fashion group and launched a new women’s fragrance by the end of 2004. Prada became the official partner of Italian Pavilion at the Shanghai World Expo in the year 2010 and in the same year it launched its collection and eyewear postcard. (Prada Group, p. 15). Apart from the offline stores the company also operates through online mode of business. Business Model E-business is often defined as transformation of some key business through the use of the web and internet technologies. Business model is architecture for the products and services and of the information flow which also includes the description of the business partners along with t heir roles (Hiltz, Murphy & Sigala, p.454). Business models are the most discussed topic and also the least aspect of the web which is understood. The web has changed the traditional business model of business. In the basic sense, business model is the method of performing business through which a company can sustain and generate sufficient revenue. A business model is essential and it shows how a company can make money by specifying its place in the value chain. Some of the business models are quite simple whereas others are complex. Internet has given rise to new kinds of business models. But at the same time the web is also reinventing tried and true models for online business. Business models have been defined and categorized into many different ways. Internet business model continuously keep on evolving and thus new as well as interesting variations can be expected in the near future (Rappa, â€Å"Business Models on the Web†). Prada Group had developed a business model w hich takes into consideration the value proposition and the revenue model. The reason behind the success of Prada group is the adoption of the business model. Figure 1: Business Model . (Source: Hiltz, Murphy & Sigala, p.454) Online value proposition (OVP) The first and foremost step in online business model is the value proposition for the relative business. Value proposition is mainly required for three things which are to target segmentation, focal the customer benefits and key resources of the business which can help deliver the benefit package in a much better way than its competitors. Value proposition is often considered as one of the smallest benefit package that a business offers to the customers. But the value cluster approach has helped the online business to address the multiple customer segments and at the same time offer a variety of benefits to its targeted