Question

How can business ecosystems be an opportunity for creating powerful new competitive advantage? Give one example.

Answer 1

Business ecosystems

The business ecosystem is defined as the network of organizations that includes its suppliers, distributors, customers, competitors, government agencies, and many more that are responsible for the delivery of goods and services. In the business ecosystem, one factor is affected or can affect other factors that create an evolving relationship in which each business unit must be flexible and adaptable to survive as in the ecosystem.

business ecosystems be an opportunity for creating powerful new competitive advantage when the firms are flexible and adaptable in the dynamic environment. Successful businesses should attract resources of all kinds, capital, partners, suppliers, and customers to create cooperative networks. When a company, as a part of the ecosystem, work cooperatively to support new products, satisfy customer needs, and incorporate the next round of innovations, it can win a competitive advantage. business ecosystems create several new ways to address fundamental human needs and desires to fulfill accordingly. For example, Many car- and ride-share businesses are experimenting, learning, and drawing into different values of the Millennial generation to capture their need and wants.

Hence, the business ecosystem and its depth of knowledge and understanding can provide a powerful competitive advantage to many firms and businesses.  

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