Business Ecosystem Defined
Business ecosystem is a community of organizations and stakeholders (players) operating within
business environment, which
collaborate and compete in an economic web of relationships.
A business ecosystem is the network of organizations—including suppliers,
distributors, customers, competitors, government agencies, and so
on—involved in the delivery of a specific product or service through both
competition and cooperation.
Each entity in a business ecosystem ecosystem
affects and is affected by the others, creating a constantly evolving
relationship in which each entity must be
flexible and adaptable in order to survive as in a biological ecosystem.
These relationships co-evolve through time
subject to the general forces in the business environment and the specific
moves made by the web of players.1
Today, the business ecosystem replaced
traditional concepts of industry and market with business communities of
interacting organizations that together create, deliver and consume goods
and services. These ecosystems are complex networks of players, that go far
beyond traditional competitors, customers, and suppliers. They comprise
communities of organizations that collaborate and compete in economic web of
5 External Drivers of
drivers – changes
in the market make-up such as
attitudinal moves in demand, income alterations, or demographic
shifts that change definitions of
value and convenience...
Strategy formulation is the process of
determining appropriate courses of action for achieving organizational
objectives and thereby accomplishing