Business Ecosystems

2462 WordsMar 5, 201110 Pages
1. Definition Business Ecosystem is a strategic planning concept originated by James F. Moore . The basic definition appears in Moore's book, The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems, published in 1996. Moore proposed the following definition: “An economic community supported by a foundation of interacting organizations and individuals – the organisms of the business world. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem.” Investopedia (2010) provides a simplified definition of business ecosystem; it is “the network of organizations – including suppliers, distributors, customers, competitors, government agencies and so on –…show more content…
But no single firm has all of the required specialized knowledge and managerial resources necessary to fulfil customers’ needs. This requires the participation of diverse contributors, each of which is a master of fast-moving, complex and subtle developments in its own domain. Then, by pooling resources from various business ecosystem participants, companies will be able to join complementary innovations and customers will benefit. 3) Rapid development of markets: The activities of business ecosystems are based on the “co-evolution” of markets. Some of the most interesting work on business ecosystems is being done in developing countries. For instance, the symbiotic nature of the relationships between various private sector and social institutional players can lead to a rapid development of markets serving the world's substantially poorest citizens. 4) Unboundedness of markets: Because of deregulation and the development of information and communication technology, place has become a far less important determinant of success. Business ecosystems attach less importance to geographic location as the products offered by the ecosystem participants do not have a limited market. This comes hand in hand with the fact that business ecosystems offer to its participants a lower cost of entering
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