Towards and Entertaining Business Model: A Teaching Case

For managers in established firms the Internet is a tough nut to crack. It is simple to set up a web presence, but difficult to create web-based business models. The brave new world of electronic commerce offers opportunities for businesses to enter new markets, create new products and deliver them in innovative ways. However, these opportunities can be threats. A key threat to any business, almost regardless of their place in the value chain, is disintermediation. Suppliers, who may be current collaborators, find that they can now reach customers directly. While those supplying physical goods face the risk of being \u27disintermediated\u27, the situation is worse for businesses that deliver digital or at least digitisable products. This case analyses the response of one firm, Egmont, to such threats and their quest for a new model upon which to base their business