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A hybrid business model is a form of business which incorporates the elements of both the traditional and e-business structures hence using more than a single way of monetization to ensure that it is suits the needs of the customers in the best way possible. It assumes the traditional form of business while at the same time uses online approaches to enhance its activities. The evolution and amalgamation of more than a single business concept or idea serves as an added advantage over the purely virtual or brick and mortar model because of some reasons (Deal, 2010).
The fact that the model employs use of technology in a combined manner to initiate new and effective applications creates new string of tools for hybrid business that helps to widen the thinking of the entrepreneur/manager. This allows them to engage new techniques to old ones and therefore attain competitive advantage, yet on a local scale.
The cost of expansion for the targeted market in this model of business is also considerably low as compared to other models of businesses thus acting as another advantage. This is due to the fact that that the hybrid model is not any more just consigned to local marketing and sales but it accommodates a blend of local, regional and international markets (Deal, 2010). Businesses become more successful by effective application of this model of business and in the end more profitable because of the faster growth rate.
However the hybrid model of business has a shortcoming of being more complicated and its strategies are more tiresome to implement. This is what makes many people and companies think twice when they want to switch to this model.
In the wake of advanced information and communication technology, many investors have initiated e-commerce as a form of business; entailing selling and buying of goods and services via electronic systems. To make this form of business successful, effective metrics have to be employed to measure its progress and monitor various operations of the business. Social networks are very important in improving the operations and profitability of e-commerce because they help link to a wider base of customers. The need for faster expansion has also facilitated the development of hybrid business models that incorporates the elements of both the brick and mortar and e-commerce models.