A01 chaf6542 06 se fm indd

online value proposition (OVP)

 based on the 7Ps of the 

marketing mix

.

To conclude this section on digital business strategies, complete Activity 5.3 for a different 

perspective on digital business strategies.

Decision 4: Business, service and revenue models

A further aspect of Internet strategy formulation closely related to product development 

options is the review of opportunities from new 

business

 and 

revenue models

 (first intro-

duced in Chapter 2). Constantly reviewing innovation in services to improve the quality of 

experience offered is also important for digital businesses. For example, innovations at holi-

day company Thomson (

www.thomson.co.uk

) have included: travel guides to destinations, 

video tours of destinations and hotels, ‘build your own’ holidays and the use of email alerts 

with holiday offers. Such innovations can help differentiate from competitors and increase 

loyalty to a brand online.

Business model

A summary of how a 

company will generate 

revenue, identifying its 

product offering, value 

added services, revenue 

sources and target 

customers.

Revenue models

Describe methods of 

generating income for an 

organisation.

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Part 2  Strategy and applications

Activity 5.3

Digital business strategies for a B2C company

Purpose

To evaluate the suitability of different digital business strategies.

Introduction

Many industry analysts such as the Gartner Group, Forrester, IDC Research and the 

‘big four’ consulting firms are suggesting digital business strategies. Many of these will 

not have been trialled extensively, so a key management skill becomes evaluating sug‑

gested approaches from reports and then selecting appropriate measures.