TRANSFORMATION OF BUSINESS MODELS IN THE CONTEXT OF DIGITALISED COMPETITION

Abstract

The article provides an empirical analysis of the transformation of typical business models and patterns of competitive behaviour of firms under digitalisation The study analyses cases of both successful adaptation and decline of companies (e.g., Borders Group, Time Inc.), emphasizing the critical role of timely digital business model implementation. The research determines the differences in the vectors of transformation for companies operating in digital markets and traditional markets affected by digitalisation. It identifies mechanisms by which digital ecosystems reshape competition and create new market dynamics. Furthermore, the study reveals that digitalization fosters the emergence of new business models while simultaneously forcing legacy firms to either adapt or face obsolescence. The rise of multifunctional platforms and the expansion of digital ecosystems alter traditional market structures, compelling firms to embrace innovative strategies. The research also considers cases where businesses fail to recognize these shifts in time, resulting in their decline. A key focus is placed on financial technology firms and the impact of digital transformation on consumer behaviour. By exploring the diverse trajectories of companies in the digital era, this study underscores the necessity of strategic flexibility and proactive innovation. The findings provide valuable insights into how businesses can optimize their approaches to digital transformation, enhance resilience, and sustain long-term competitiveness in rapidly evolving markets. The research contributes to a broader understanding of how digital disruption reshapes traditional industries, bridging theoretical insights with practical recommendations. The article offers guidance for businesses navigating digital transitions through a multidisciplinary perspective, emphasizing the importance of adaptive leadership, technological investment, and agile business models. This study provides a detailed analysis of factors shaping competitive strategies in the digital economy and the adaptation of firms to new realities.