Analysis of Business Success in the Network Economy: Strategies

This report explores the network economy, emphasizing its impact on business performance and the necessity for adaptation in a competitive, digitally-driven world. It highlights the importance of market research, networking, and social media utilization for business success. The study identifies key competencies such as digital building block skills, business enabler skills, human skills, and problem-solving abilities crucial for thriving in the network economy. Furthermore, it examines the survival of traditional economy elements like manufacturing and commodity industries, citing examples of companies that have sustained business activities through innovation and customer satisfaction. The report concludes that while the network economy presents challenges, traditional businesses can adapt by embracing key strategies and competencies, ensuring their continued success in the digital age. Desklib offers a wealth of similar resources for students seeking academic support.

Network Economy

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Business need to do to succeed in the new network economy....................................................2
Key competencies that are necessary in the network economy...................................................3
What parts of traditional economy are likely to survive in the digital revolution.......................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Network economy concept increases the value of products and services with effective
manner, it especially beneficial for the expansion of the business activity at international and
global level (Ustyuzhanina, Evsukov and Komarova, 2018). On the basis of recent trend many
companies develop their business throughout the uses with technology tools. This report
provides information about that how network economy increases the business performance, why
it's essential for survives in the competitive world and now why some company applies the only
traditional economy concept for business expansion. It will further discuss some parts of
traditional economy that are in existence in this new era of digitalization and in network
economy.
MAIN BODY
Business need to do to succeed in the new network economy
On the basis of recent trend many organizations expand their business with the utilization
of network because its beneficial for according to recent market trend. New network develops in
business require knowledge about innovative things. Uber, amazon and many more companies
expands their overall business activities only with the help of network development. Multiple
things follow by the business for network marketing success are as follows:
Research about the products: On the basis of recent trend almost every people use social
media application for product purchasing. It’s very beneficial concept for improvement in the
business sales at international market. Expansion of the business activity require network
development for new opportunity expansion. Some areas that need to be focused by companies
in order to become successful in this advanced technological world or economy is: market
research. In ancient time, people used to open shops and businesses without focusing on market
research and they knew they will survive by selling products (Paul, 2020). But now as
competition is increasing and changing customers’ needs are making difficult for companies to
being in this network economy. So, it has become important for all companies in this era to focus
on market research and knowing about products that they are going to sell in the market. This
market research makes companies able in understanding needs of customers as what they prefer
and what are their desires related to product that they are going to sell. On the basis of
information collected from research, can make able to companies for being in the competition,
attracting customers and increasing sales. Amazon and Uber are some examples that identified
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needs of people and they found that due to busy schedule it becomes difficult for them to hire
taxi and go for their work so, for making beneficial to customers, this company started to provide
affordable and personalised ride and other services.
Networking: It is other important part of the future labour market and key of becoming
successful in this era. it is all about improving relations with people, putting them first and
making them aware about effectiveness of products and services. A successful company is the
one that has numbers of loyal customers with it and it is possible when they have improved
network of people. For that they need to make use of communication skills for improving
relations with people and motivating them for buying products and being with the company for
the long run (Teece, 2017). By adopting “We oriented” attitude rather “I oriented”, businesses
can open more doors and can help employees in navigating the new economy.
Using appropriate social media platform: Social media is the most used by people
nowadays and advanced technology has changed their behaviour and needs as well. They do not
prefer to go outside for shopping and they like when they get their desired products at their home
door. Companies that provide all detailed information to customers via such platforms are more
likely to become successful. But selection of platform is one of the critical task. Companies need
to select the best and suitable platform with the nature of their business and products. On the
basis of data collected in research and as per the customers’ desires as which platform they use
the most for collecting business information, companies can select and can increase customers’
information (Hopkinson, De Angelis and Zils, 2020).
On the basis of above discussed areas and ways, it can be said that traditional markets can
also survive and can take competitive advantages by making use of these strategies. By focusing
on all these keys, companies can become successful in the new digital era and in network
economy.
Key competencies that are necessary in the network economy
Competing in this digital age or in the network economy is not an easy task as companies
are striving hard for being in the competition and accomplishing their goals. There are some
traditional companies that do not makes use of network or internet for operating business
operation because of high cost of network (Ustyuzhanina, Evsukov and Komarova, 2018). So,
they are lacking behind and competition is increasing among all digital companies such as: Uber,
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Lyft, Amazon, EBay and others. But there are numbers of skills and competencies that can make
companies able to perform in this network economy such as:
Digital building block skill: This skill is critical as well as useful for outside traditional
digitally intense job families. these skills make people able to aspire functional analyst and also
help them out in making better decisions. Skills related to digital building include: software
development, data analysis ability, computer programing, software development and digital
security. Employers as well as employers who have all these skills and know how to make use of
internet and digital tools are more likely to being in this network economy and can take
competitive advantages by striving hard.
Business enabler skills: These skills also play a synthesizing role in the workplace and in
this network economy. If employees have these skills, then they can put other skills to work in
practical situations. Some business enabler skills that are required for being in this new digital
era or in network economy include: business process, project management and digital design
(Kuklin, Bratukhina and Gorokhovitskaya, 2021). By applying the creative power of digital
science to the overall business practice, companies can survive in this network economy and
digital era as well.
Human skills: Human skills are common that play a vital role in both tradition as well as
in network economy. These skills include: creativity, social intelligence, communication,
collaboration, flexibility, analytical and an ability to improve or maintain relation with others.
Along with technological skills, employers are required to have all these skills. The main key of
becoming successful in this network economy is increased satisfaction level of customers and it
is possible when employers improve relation and provide qualitative services to them. For
improving relations with them and satisfying them, employers require having an effective
communication skill by which they can influence and increase customers’ experience. There are
numbers of examples of companies that have these skills and on the basis of these skills they
have become the market leader such as: e-Bay, Woolworth and others.
Problem solving skills: It is other effective interpersonal skill that also plays a vital role.
For businessman it is important to have an ability to solve problems in an effective as well as in
timely manner. This technical and digital era consists numbers of business environmental factors.
Changes in all these factors might affect companies to the great extent and make it difficult for
them to earn profit and accomplishing goals (Gwadabe and Amirah, 2017). There are some
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traditional companies that used to sell their products offline got affected the most from changing
factors or Covid-19 pandemic. This factor affected all companies to the great extent but those
companies that were lacking behind in the ability of making decision or solving problems got
affected the most. Some companies took great decisions as by developing websites and making
use of their ability to improve relations with others, they continued their business and earned
profit as well.
So, on the basis of above discussed skills, it can be said that all these skills business
enablers and digital business block can make traditional companies able to survive in this new
era and can continue their business and can accomplish their goals.
What parts of traditional economy are likely to survive in the digital revolution
Traditional economy has several differences with network economy. Traditional economy
refers a system in which traditions, beliefs and custom shape services and goods that the
economy produces. Countries that are still follow this system are generally developing countries
and rural or farm based (Mühleisen, 2018). there are some parts of traditional economy that are
likely to survive in this digital era and in network economy. One of the best example of part of
traditional economy is: manufacturing as well as commodity.
There are numbers of places or developing countries where manufacturing is being done
without making use of digital technologies to the great extent. It is one of the essential type that
is required by everyone and no one can survive without it. So, there is no restriction in this part
of traditional economy. Toyota group is the main example as it does not make use of
technologies to the great extent still have an improved image (Klimczuk and Klimczuk-
Kochańska, 2019). But there are some areas where some technologies are being used for
manufacturing and commodity.
Manufacturing companies in some countries do not make use of technologies to the great
extent and they mainly focus on labour workforce for maintaining qualit. But still they do all
these activities without making use of machineries and advanced technologies and are earning
profit in this network economy. There are other parts of traditional economy that are still in the
new network economy and old economy stocks have sustained business activities via many
market cycles. Some examples of companies of old economy that are performing in a better
manner in this new era include: Procter and gamble, Caterpillar and Ford. These old economy
companies’ business activities dominated the economic landscape. These all have sustained
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business activities and they know how to satisfy customers and increase their experience.
Improved image and an ability to improve relation with customers make them able to being in
the competition and increasing profit margin in this network economy (Phillips, Relf-Eckstein,
Jobe and Wixted, 2019). One of the main key of their success is an ability to innovate products
as per the customers’ needs. Overall, it can be said that all these companies that participated in
traditional activities, continuing attracting customers and increasing productivity with minimal
investment in leading new era technologies.
Many investors equate old economy stock with the term blue chip. This type of economy is
classified in the value category that is known for low volatility, consistent returns, stable
earnings and steady streams of cash flow. So, it can be said that there are some limitations of
traditional economy but still some part is managing in continuing their business in network
economy by making use of their skills, capabilities and focusing on satisfying customers’ needs.
They can take competitive advantages by improving image in the market and by retaining loyal
customers with them and then they will not require investing in advanced technologies to the
great extent.
CONCLUSION
It has been summarised from above study that network economy or digital era is competitive
and companies are striving hard for being in the competition and in this new era. Traditional
economy is lacking behind and suffering numbers of problem because of using traditional ways
of performing business functions. It has further discussed some skills and competencies that are
required for working in digital era and in this new network economy. Some competencies that
this study has shown include creativity, interpersonal and business enablers. Lastly, it has shown
some parts of traditional economy that can survive in this new era without getting affected and
can earn profit.
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REFERENCES
Books and journal
Gwadabe, U.M. and Amirah, N.A., 2017. Entrepreneurial competencies: SMES performance
factor in the challenging Nigerian economy. Academic Journal of Economic
Studies. 3(4). pp.55-61.
Hopkinson, P., De Angelis, R. and Zils, M., 2020. Systemic building blocks for creating and
capturing value from circular economy. Resources, Conservation and Recycling. 155.
p.104672.
Klimczuk, A. and Klimczuk-Kochańska, M., 2019. New economy, food, and agriculture. New
Economy, Food, and Agriculture,[in:] PB Thompson, DM Kaplan (eds.), Encyclopedia
of Food and Agricultural Ethics, Second Edition, Springer, Dordrecht. 2019. pp.1893-
1898.
Kuklin, A.V., Bratukhina, E.A. and Gorokhovitskaya, Y.O., 2021. QUALITY AS THE KEY
LANDMARK OF EDUCATION MANAGEMENT IN THE REGIONAL
ECONOMY. International Journal for Quality Research. 15(2). p.451.
Mühleisen, M., 2018. The long and short of the digital revolution. Finance &
Development. 55(002).
Paul, J., 2020. SCOPE framework for SMEs: A new theoretical lens for success and
internationalization. European Management Journal. 38(2). pp.219-230.
Phillips, P.W., Relf-Eckstein, J.A., Jobe, G. and Wixted, B., 2019. Configuring the new digital
landscape in western Canadian agriculture. NJAS-Wageningen Journal of Life
Sciences. 90. p.100295.
Teece, D.J., 2017. Profiting from innovation in the digital economy: standards, complementary
assets, and business models in the wireless world. Research Policy (forthcoming).
Ustyuzhanina, E., Evsukov, S. and Komarova, I., 2018. Network economy as a new economic
system.
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