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Outline
Virtual Business Models
Question One
This section defines virtual business models and how they differ from other traditional
business models. The key differences include an increased use of technology and improved
operational efficiency.
Question Two
This part identifies the underlying trends that have necessitated today’s virtual business
models. The changing technological environment and increased competition pushed companies
to embrace more innovative approaches.
Question Three
Several virtual business models exist, including advertising, manufacturing, merchants,
and subscription.
Question Four
The best virtual business model is subscription since it offers a steady and predictable
flow of income, especially if the company streamlines their content to fit the consumers’ needs.
Question Five.
The advertising business model needs to significant changes to address the various ethical
concerns associated with the model.


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Virtual Business Models

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Virtual Business Models
Question One
The business virtual model refers to an innovative way of structuring start-up
organizations to create flexibility and improve efficiency in financial and human resource
utilization. This model differs significantly from the traditional business design where multiple
departments perform various diverse tasks. This approach reduces the overall responsibilities and
ensures that no single individual or entity is responsible for all activities. Instead, several
freelancers and people with diverse skills are in charge of unique roles to ensure the company
runs smoothly.
The business virtual model leverages technology throughout processes such as
communication, product development and marketing to make up for the several drawbacks
associated with the approach, including the lack of physical offices (Bryder et al., 2016). Overall,
this model offers significant cost-saving advantages to the firm through the reduced
responsibilities and increased resource utilization efficiency.
Question Two
The global economic environment is rapidly evolving, pushing existing and upcoming
organizations to reduce wastage, optimize production, and embrace more cost-effective
operations. Also, technological development, especially in Information Communication
Technology (ICT) has availed new opportunities for more effective business processes by
streamlining global communication (Philipp Ebel et al., 2016; Linde et al., 2021). As more and
more companies leverage these available opportunities, other have to follow suit to gain and
retain a competitive advantage. Implementing a virtual business model eliminates several costs,
especially those associated ...