Which parallel model is based on using the Income generated by an existing business model to fund a new digital business model until can fund itself?

Question

Options

• ACannibalism
• BErosion
• CConcurrence
• Dsynergism

• A
  4% (2)
• B
  2% (1)
• C
  12% (6)
• D
  82% (42)

Explanation

Synergism describes exactly this funding dynamic: the established business model acts as a financial "host," channeling its profits to sustain the emerging digital model until that new model becomes self-sufficient - the two work together cooperatively for mutual long-term benefit.

Why the distractors are wrong:

• A. Cannibalism - the new model competes with and steals revenue from the existing model, harming it rather than being funded by it.
• B. Erosion - describes the gradual decline of an existing model due to disruption, with no supportive relationship involved.
• C. Concurrence - means both models run simultaneously, but implies no financial dependency or support between them.

Memory tip: Link "Synergism" to "synergy" - two things working together, with the old model energizing the new one financially. If one is feeding the other, that's synergism.

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