Study of the new economy and it's relation to the traditional strategy frameworks

Abstract

The business to consumer and the business-to-business markets are creating new business economics and approaches to creating value that are entirely different from business approaches that were adopted a few years back. Competitive advantage comes from those strategies and processes that allow the company to react quickly and flexibly and to seize advantages in an evolving market .The successful companies in the new economy are following different business models and ideas, which by themselves are a source of competitive advantage. As the business rules for the new economy are radically different from those of the traditional economy, the paper looks at the competitive advantage and the shifts within the landscape of the networked economics. Looking at different dimensions of the competitive advantage, both from within the firm - (organizational advantage) and the external participants - suppliers, customers and the network on the whole, a structure to capture all these dimensions in a firm's transition to the new economy has been evolved An energy company that has made a successful transition has been studied to validate the utility of the structure evolved