Collaborative Consumption Essay Example

Published: 2018-02-19
Collaborative Consumption Essay Example
Type of paper:  Essay
Categories:  Finance Business
Pages: 4
Wordcount: 992 words
9 min read

What is collaborative consumption

In current times commercial models have played a critical role in the business fields leading to their popularity. Zott et al. (p.1020) state that since 1995 up to 2011 there were several academic articles which gave an overview of the standpoints on the business model. Zott states that in spite of the popularity of corporate model in relation to other works there is no collective definition that is common for the concept of business ideal. For instance, in 2001 scholars named Zott and Amit illustrated that the business model is the configuration, content, and the control of business dealings that are designed to develop value via exploiting of organizational opportunities.

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On the other hand, an article written by Margetta (n.p), defined a good business model by use of questions which are such as; who is the client? What is the consumer’s value? How to accrue profits from the business? The economic logic that elaborates how the organization can provide quality products and services at minimal costs? Therefore in this research paper trade model is defined as a theoretical model enabling to assist in understanding the characteristics and significant aspects of trade. The core factors of commercial model works are the use of e-business and incorporation of technology in the firms.

Collaborative consumption business model

Zott et al., (p.1020), most of the literature review focuses on e-trading models particularly on the mechanisms of e-businesses and tactical advertising in e-dealings. An author named Applegate (p.65) analyzed the entire concept of e-business model by use of a simple framework that comprised of firm capabilities, business concept and value of output delivered in all business stakeholders. While Weill and Vitale (n.p) created a schematic e-business model that was atomic to assist in evaluating an e-business inventiveness via outlining the substantial elements. Thus, the schematic demonstrates the connections and flows of business funds, commodities or services, data between the involved business parties that include the organizations' interest, clients, and suppliers and their partners.

In addition to the discussion of the diverse mechanisms of the e-commercial model, most of the scholars developed ontologies on corporate models that conceptualized the relationship that existed between dissimilar modules of the e-commercial model. For instance, Gordijn and Akkermans (p.11) discussed a modeling approach to the e-business that helped on the definition of how to create economic value and exchange resources within the players in the network. This ontology applies concepts that have been derived from several business and economic literature in order to establish the required conceptual tool in order to effectively analyze the e-business projects and platforms. However, the study that has been through most citations is the Osterwalder business model that provided a highly comprehensive framework applicable in the analysis of the generic business models. Most different industries implemented the Osterwalder ontology to explore and analyze some of the business models. For instance, Tankhiwale (n.p) implemented the Osterwalder ontology in the analysis of a business model interrelationship that exists with changing business processes architecture through the analysis of a major telecommunications service provider. Osterwalder’s ontology entails four key business areas that include customer interface, product, financial aspects and infrastructure management. These four key parts were further subdivided into other building aspect as indicated in the table below (Table 1.1).


Building Block



The proposition of value

This refers to the valued goods and services that the organization provides.

Customer Interface

The target customers

This is the customer segment aimed at in the industry by the company.

Channel of distribution

This is the manner in which the company reaches its customers.


This is the link that exists between the corporation and the clienteles.

Infrastructural Configuration

Value of Configuration

This is the preparations made and the undertakings that are required for the creation of value for the corporation’s clienteles.


The capability of the company to continuously generate value for the clienteles.


The aspect of coordination and collaboration between the customers so as to create and retain value for the clients.

Financial factors

Cost configuration

These are all the business factors that are incorporated in a specific commercial model in monetary aspects.

Profit Model

This denotes the manner in which the organization makes cash through all-rounded income utilization.

The Osterwalder’s ontology of the nine building blocks: Osterwalder (2004, n.p)

This ontology has been implemented in many research and frameworks to analyze commercial models in different trades. This ontology may be implemented in a numerous ways of business models. However, Osterwalder has developed a different ontology for the e-business models that puts into consideration the idiosyncratic aspects of the e-business.

Assessment of Osterwalder’s e-commerce Business Model Ontology

Osterwalder (p.2) conducted work on the ontology of business model was chosen to develop a framework that is flexible and adaptive so as evaluate the business models in relation to business-to-business digital open market. Due to the existence of a all-inclusive structure provided by the ontology, it can cover the activity structures and monetary elements. The objective of this segment it illustrates Osterwalder (p.2) e-corporate model ontology to acquire a more knowledge of the fitness of this ontology in its usage to create an empirical study framework. There is the need and benefit of the usage of a formalized e-trade model because it can enable gaining an understanding of the elements of e-businesses. Further, it helps the business managements to facilitate change, create a network platform that allows the flow of communication with differing stakeholders, and identify and incorporate relevant strategies to be followed in an e-business (Osterwalder, p.2). In similar to the generic ontology of business model, there is a division of e-business model ontology on four distinct pillars that include customer relationship, organization managing, monetary factors, and commodity innovation.

The four pillars are further divided into small sections that are in relation to the features of e-business.

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