Note: 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 first 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 core 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 and industries. 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. Digital disruption often leads to the displacement of established companies and the emergence of new players in the market.

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, with the rise of e-commerce platforms like Amazon, traditional retailers have faced significant challenges.

Impact on the Original Business Model: The impact of digital disruption on the traditional retail business model has been substantial. Customers now have the convenience of shopping online, comparing prices, and accessing a wide range of products from the comfort of their homes. This has led to a decline in foot traffic and sales for traditional retailers. Additionally, the need for physical stores and associated costs, such as rent and staffing, have become less necessary for online retailers. As a result, many traditional retailers have had to adapt their business models by investing in e-commerce platforms, improving their online presence, and enhancing their delivery services to remain competitive.

In conclusion, the digital disruption caused by technology and the internet has significantly impacted the traditional retail business model. The rise of e-commerce has changed customer behavior and preferences, leading to a decline in traditional retail sales. To survive in this new landscape, traditional retailers have had to adapt their business models to incorporate online channels and improve their overall customer experience.