Keeping the economic and market drivers, as discussed, in its places, the model suggested in the paper is the ‘Open Source Business Model’. Though there is a misconception among the general mass that under this model the trade of the products are take place for free or at a negligible cost. Though it is true that under this model; business may not generate money from the product directly, but it dose generates a stable and potential revenue stream in the long run.
The business arena of 21st century in the web based market claims the greatest long term strategic advantages through the open source business model.
In the context where the economic policies are imposing the value added tax on the business transaction, in against of payment of revenue to the government, the model has to have the potentiality to offer the value added services whose making, maintenance and policy execution charges can justify the revenue of the added value. In this case the model shifts the commercial value of the actual product is shifted to the concept of revenue generation from the overall benefit of the product that includes ancillary services like systems integration, support, tutorials and documentation.
Since the UK government policies and its effects in the business community are not limited to UK; rather have a holistic consequences including the EU membership, the integrated model, which is open to the different communities can serve the greater responsibility of a larger community comprised of 27 member states having different need and system of doing a particular business.
Further, the reason of the business community having an international exposure needs a model like this to fit in the changing environment of government policies and the synchronization of the business environment to deliver a better output in the long run.
The community based open source model holds the paradoxical situation giving the privileges to the members to alter and change the structure of the model as per the new solutions, features, and ideas back to the community as a whole. At this high time of the economic crisis where government is thinking of ways of more inflows and less outflows, the model can deliver a crisp solution of developmental cost cutting by letting reap the rewards of the effort of numerous highly skilled developers without any cost involvements.
Thus, the EU member states can alter the anatomy of the model as per the change in the government policies and the call of the market like in case of the UK government policies the model can support the changes and new introductions while balancing the equation of the trade relation with European Union. Among the other strengths of the model; the ability to market itself speaks louder as the production of quality product and generation of higher reputation grabs the market by storm including the huge share of the complex market base, international referral network, generated by the users and consumers, yielding more revenue.
Thus, by adopting this model, products of superior quality can be produced that have an immediate appeal for a competitive advantage, which proves that the model is recession proof. It also has the ability to create multiple scalable revenue streams that can be easily shared by the government of UK and the EU community strengthening the future business ties through the free availability and accessibility throughout the community (Extropia 2009). V. UK Government Policies: Government is creating rules and regulations on the basis of which businesses are gaining the edge to compete and counter each other.
To address the need of the domestic and international social environment; government changes the policies that force the business community to change the pattern of their operation. Therefore business is highly sensitive by the movement of the government policies. Below are the key policies that affect the business landscape: 1. Economic and Taxation Policy: The key area of this government policy is the role that the government offers as the state of the economy. In the age privatization, where the industries are under the hold of the private shares, it has created a highly competitive environment for the business operations.
To bear the cost of increasing the pace of business structure and execution it has taken the toll on the taxation policy as the business cost. The increase in tax on the business profit has the consequences of rise in the Maximum Retail Price and affect in the bottom line. As the Open Source Business Model has the multiple stream revenue generation process, it can maintain the inclined graph of the business, which can nullify the tax burden resulting the users avail the products or services at the justified price.
UK being the member of EU, it has to be kept in mind that the single market policy of EU will appreciate if UK can generalize the price factor even after the tax hike. There are members of different economic status in EU; so, the delivery of superior product at lower cost will also ensure a door way to import and export treaties between UK and the members of EU bolstering the future foundation of business of UK with an impeccable impact on EU membership. 2. Legal Policy: At the present state the government is frequently changing the Legal Policies in response to the Political Policies.
This is again forcing the business establishments to abide by it in a continual process in accordance with the legal framework. As the business going global and mixing with different culture the Legal Policies are introducing increasingly tighter protection for the consumers to guard them from any sort of unfair trade practice. It has also created further tighter protection terms of fair competition between the competitors and by no means should the competition affect the consumers. In short, the consumer forum has become tighter than tight. All these parameters have an increasing effect EU regulation and directives (The Times 100 2009).
To response this elaborate policy framework of legal interest, the model has the in-built feature of open source editor and integrator that binds the professional, formation, support, consulting, integration, additional development and third party maintenance to update the legal aspects and regulations at individual fronts from a same platform. Change in policy can be viewed by the entire community and with the power of single platform multiple user capacity everyone can operate the business accordingly through out EU including UK cutting the cost of communication and research of each member (Pilot System 2009).
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