Using business models and revenue streams for digital marketplace success
Over the last 18 months digital market places have gone through a difficult period of change, consolidation and closure. They have suffered from meagre transaction volumes and equally meagre revenues and they have faced a raft of competitors. Identifies business model and revenue stream factors likely to improve an organisation's chance of success. A success factor is understood to be a quantifiable measurement that determines the outcome of a business activity. In order to obtain these success factors, information has been sought through interviewing three senior executives from digital market place organisations. This has been supported by literature research using academic sources and industry analyst material. Draws an analogy between the financial services industry and the digital market place sector as these two industry groups share many commonalities. Identifies five factors that make important contributions to successful trading from business models. They cover the provision of services, market positioning and targeting clients. The successful revenue stream strategies involve specific approaches to developing and maintaining revenue from transaction fees, speculation, billing, service provision and client focus. Concludes that digital market places will become an intrinsic part of the way that organisations conduct business and provides some suggestions for their continuing successful operation and growth.