Page 2 of 4eBusiness © NCC Education Limited 2023Note: When terms are given in bold, you should include an explanation of theterm(s) in your answer.Questions continue on the next pageAnswer any FOUR (4) questionsMarksQuestion 1a) Explain what is meant by the term business model and digital disruption.Give an example of a business model which has been disrupted throughtechnology and the the internet and critically evaluate how this has impacted onthe orginal business model

Question 1a) To answer this question, we need to understand the terms "business model" and "digital disruption."

1. Business Model: A business model refers to the framework or plan that an organization uses to create, deliver, and capture value. It outlines how a company generates revenue, interacts with customers, and operates its activities. A business model typically includes elements such as target customers, value proposition, revenue streams, cost structure, and key partnerships.

2. Digital Disruption: Digital disruption refers to the transformative impact of digital technologies on traditional business models, industries, and markets. It occurs when new digital technologies, such as the internet, mobile devices, or artificial intelligence, fundamentally change the way businesses operate, deliver value, and interact with customers.

Example of a Disrupted Business Model: One example of a business model disrupted by technology and the internet is the traditional retail industry. In the past, brick-and-mortar stores were the primary means for customers to purchase goods. However, the rise of e-commerce platforms, such as Amazon, disrupted this business model by offering customers the convenience of shopping online. This shift in consumer behavior has significantly impacted traditional retail businesses, leading to store closures and a decline in foot traffic.

Impact on the Original Business Model: The impact of digital disruption on the original business model of traditional retail has been substantial. Retailers have had to adapt to the changing landscape by investing in online platforms, improving their digital presence, and enhancing the customer experience. Additionally, they have faced increased competition from online-only retailers, forcing them to rethink their pricing strategies and value propositions. The need to integrate online and offline channels has become crucial for survival in the digital age.

In conclusion, the example of the traditional retail industry disrupted by technology and the internet demonstrates how digital disruption can significantly impact an original business model. It highlights the importance for businesses to embrace digital transformation, adapt to changing consumer behaviors, and find innovative ways to deliver value in the digital era.