Emerging Modes of Business: Types, Scope & Benefits

Every decade brings forth new business models driven by advancements in technology. In this article, we’ll explore various emerging modes of business that are currently impacting the economy. We’ll discover how sectors such as healthcare and finance are influenced by these new models and what this means for individuals and businesses alike.

Additionally, we’ll discuss e-businesses and how they are beneficial to the emerging modes of business. If you’re exploring business ideas, this article will provide valuable insights into the current trends in the business world.

What Are the Types of Emerging Modes of Business?

Emerging modes of business include e-businesses that operate online, subscription-based models offering recurring services, and platform-based businesses connecting users with service providers, such as online marketplaces. Other examples include gig economy models that utilise freelance workers and freemium models that offer a basic service for free while charging for premium features.

What Is E-Business?

E-business is an important component of the emerging modes of business. It involves conducting business activities over the Internet, including transactions, operations, and customer interactions. E-business goes beyond just e-commerce (buying and selling online) to include a broader range of digital activities that enhance business efficiency and customer engagement. These activities include online marketing, supply chain management, and providing customer service using digital platforms. Essentially, e-business benefits from technology to simplify operations, reduce costs, and provide better service to customers.

What Are the Scopes of E-Business?

E-business extends its reach across various sectors and functions, including:

• E-Commerce: The core of e-business, facilitating the buying and selling of goods and services online through websites or mobile apps.
• Online Marketing: Promoting products and services via digital channels such as social media, SEO, and email marketing to reach a broader audience effectively.
• Supply Chain Management: Streamlining the flow of goods and services through digital platforms, enhancing coordination between suppliers, manufacturers, and distributors.
• Customer Relationship Management (CRM): Leveraging digital tools to manage customer data, preferences, and interactions to improve service and encourage loyalty.
• Business Process Outsourcing (BPO): Outsourcing non-core business functions, like customer service or payroll, to third-party providers using digital communication tools.
• Telecommuting: Enabling employees to work remotely through digital platforms, enhancing flexibility and reducing office space costs.
• Digital Payment Systems: Facilitating secure online transactions via payment gateways, ensuring convenience and safety for both businesses and customers.

Let Us See What Are the Benefits of E-Business

The following benefits make e-business a disruptive business model:

• Reach Customers Anywhere: Online shops can sell to customers worldwide.
• Lower Costs: Avoiding expenses like store rent and large staff can lead to more profits, especially for new business ventures.
• Always Available: Customers can buy anytime, day or night, providing greater convenience.
• Smoother Operations: Automated systems manage inventory and orders, reducing the possibility of manual errors.
• Smart Decisions: E-businesses gather extensive data on sales trends, enabling better decision-making.
• More Affordable Marketing: Using social media and email to advertise often costs less than traditional methods.
• Easy to Grow: Online businesses can expand quickly without the need of new physical stores.

What Businesses Are Getting Impacted With the Emerging Modes of Business?

Several industries are influenced by the emerging modes of business. These include:

Retail Industry

• E-Commerce: Giants like Amazon push physical stores to adopt omnichannel strategies.
• AI: Retailers use AI for personalised marketing and inventory management.
• Subscription Models: Brands like Disney Hotstar are offering recurring services, changing consumer behaviour.

Hospitality and Travel

• Sharing Economy: Platforms like Airbnb and Uber are disrupting traditional hotel and taxi services.
• Online Bookings: Digital platforms streamline comparisons and reservations.

Finance

• Fintech: Digital wallets like Paytm and online lending services provide alternatives to traditional offline methods of banking.
• Blockchain: Speeds up cross-border payments and enhances security.
• Robo-Advisors: Automated platforms make wealth management accessible and affordable.

Manufacturing

• Smart Manufacturing: The Internet of Things (IoT) enhances real-time monitoring and helps reduce downtime.
• Automation: Robots and AI streamline production processes, reducing labour costs.

Media and Entertainment

• Streaming Boom: Services like Netflix have shifted viewers from cable to digital platforms.
• Freemium Models: Free content with premium upgrades boosts revenue potential.

Healthcare

• Telemedicine: Remote consultations have surged post-pandemic.
• Wearables: Devices that track health in real-time help their users to take control of their health.
• AI: AI has greatly improved diagnostics and patient care.

Consider a Business Loan for Emerging Modes of Business

To keep up with the emerging business trends, enterprise owners often need additional support to adapt their future business strategies, innovate, and drive growth. Whether it’s investing in new technologies, rebranding, or improving the customer experience, strong financial backing is crucial. A business loan can address various needs that naturally follow emerging market opportunities, ensuring that businesses remain competitive.

Conclusion

Emerging modes of business in sectors such as healthcare and finance present valuable opportunities for growth. It is essential to adopt innovative business models to keep up with the rapidly shifting economic environment.

To support your growth initiatives, SMFG India Credit offers business loans of up to INR 75 lakhs* at attractive interest rates for eligible enterprises. Apply online today or contact us for