Business Virtualization Influences Marketing Innovation: A Theoretical Perspective

The rise of Internet brings business to another competitive realm, or operation in conventional, physical marketplace heading for modern, virtual marketspace. Business managers often speculate on the business needs innovative form of operation under intensive change of environment. The alignment and transformation of the organizational structure should be actively reflected while a business has been confronting competition for survival. The life cycle of a business verifies the theory of evolution Darwinism. The system and rule of the market sometimes change least but sometimes most. The competitive analysis of value chain and system that the business usually employs is examined continuously in the new era. Based on the literature review, this research took network organization, virtual product and service, objective integration, resource deployment and Information Technology as the dimensions to direct the business virtualization. The virtual business operates their virtual value chain by means of gathering, organizing, selecting, synthesizing and distributing of information. The discussion of this research is that the different dimension and mix of business virtualization will influence that of the patterns of marketing innovation, such as product, notion, service, pricing, distribution channel and advertising. This research would build the business model that a business can operate appropriately in the marketplace and the marketspace after business virtualization. In conclusion, business virtualization is the focus of the strategic choice when an organization faces environmental changes and challenges, and marketing innovation presents the ability to catch the market opportunity and share and strengthen the position established.