Gaining competitive advantage through the right business model: analysis based on case studies

2016 ◽  
Vol 9 (2) ◽  
pp. 138-155 ◽  
Author(s):  
Anish Purkayastha ◽  
Sunil Sharma
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Research Question ◽  
Service Innovation ◽  
Research Approach ◽  
Strategic Decisions ◽  
Content Type ◽  
Inductive Research

Purpose – The purpose of this paper is to report on an inductive research that analyzes the unique decisions of three firms that shape their business model and, consequently, provide a competitive advantage. Design/methodology/approach – Given the paucity of prior research on the effect that a firm’s business model has on its competitive advantage, addressing the research question warrants an in-depth qualitative study. The study requires explicitly capturing decisions from a firm’s chosen business model and how these decisions are linked to its competitive advantage. The authors take on an inductive research approach to study three longitudinal case studies of organizations that have either successfully implemented their adopted business model or are implementing unique business models. Findings – First, the authors identify nine different theoretically grounded propositions based on decisions taken by the firms the authors studied, which shape their business model and give them a competitive advantage. Second, the authors look at these decisions in an integrated manner and categorize these into structural decisions and strategic decisions. Third, the authors extend an existing line of thought that predominantly views the business model as complementary to a firm’s product or service innovation. The authors emphasize on the criticality of the business model as a higher level construct formed from multiple structural and strategic decisions that, eventually, become a source of competitive advantage. Originality/value – The findings help to identify a possible theoretical explanation of newer forms of organization, evolving from product, process or service innovation, combined with their unique business model. They help in guiding practitioners to identify sources of competitive advantage through the innovative business models.

Improving your business posture

2018 ◽  
Vol 34 (5) ◽  
pp. 31-33
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Business Model ◽  
Design Methodology ◽  
Reading Time ◽  
Business Model Innovation ◽  
Cutting Edge ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Business model innovation can be a key facet to gaining a competitive advantage and subsequent success of any organization. This is investigated in this paper through French manufacturing SMEs with a turnover of less than €50m. Originality/value The paper saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent, information and presenting it in a condensed and easy-to-digest format.

Impatient business

2020 ◽  
Vol 37 (1) ◽  
pp. 43-45
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Business Models ◽  
Cutting Edge ◽  
Content Type ◽  
Corporate Strategies ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The Now Economy has turned much of the world’s marketplace on its head. Different business models and corporate strategies are needed for organizations to gain a competitive advantage. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Marico – competing with an innovative business model

2018 ◽  
Vol 8 (2) ◽  
pp. 1-20
Author(s):  
Sumit Mitra ◽  
Ranjith V.K.
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Product Innovation ◽  
Business Models ◽  
Subject Area ◽  
Sustainable Competitive Advantage ◽  
Strategy Formulation ◽  
Content Type ◽  
Innovative Company ◽  
Executive Mba

Subject area Strategic Management. Study level/applicability MBA, Executive MBA. Case overview This case deals with Harsh Mariwalla’s struggle to develop an innovative company from scratch. The journey of innovation is not an easy one. Marico was forced to compete with multinationals in many markets where it operated. Constant pressure from rivals has made the company develop a new innovative business model, which is expected to generate profitability and sustainable competitive advantage. Expected learning outcomes Students will be able to appreciate the business models, understand the competitive moves by rivals, understand strategy formulation and implementation, understand product innovation and competitive advantage and understand the ability to tackle competition with innovation. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Corporate social responsibility during unprecedented crises: the role of authentic leadership and business model flexibility

2020 ◽  
Vol 58 (10) ◽  
pp. 2213-2233
Author(s):  
Corey Fox ◽  
Phillip Davis ◽  
Melissa Baucus
Keyword(s):  
Corporate Social Responsibility ◽  
Leadership Development ◽  
Social Responsibility ◽  
Business Model ◽  
Authentic Leadership ◽  
Business Models ◽  
Research Approach ◽  
Content Type ◽  
Model Flexibility ◽  
Corporate Social

PurposeThe purpose of the present research is to explore the relationships between corporate social responsibility (CSR), authentic leadership and business model flexibility during times of unprecedented crises.Design/methodology/approachThe research approach in this study is conceptual. After a brief review of the literature associated with CSR, authentic leadership and business models, the authors introduce a model describing the interaction of authentic leadership and business model flexibility on CSR heterogeneity.FindingsThis research explains how firms that are led by authentic leaders and that have flexible business models will be more engaged with their stakeholders than firms with less authentic leaders or more rigid business models during unprecedented crises.Practical implicationsPrescriptions for practitioners are suggested for improving authentic leadership as well as making adaptations to the firm's business model. Regarding authentic leadership, firms can screen potential new hires and existing employees for authentic leadership qualities. Firms can also rely upon existing interventions shown to assist in authentic leadership development for current leaders. At the business model level, firms can focus on core resources and their application in related product and service markets.Originality/valueFirms engaged in CSR activities benefit more from those activities when leaders are authentic. However, in times of unprecedented crises, business model flexibility may also dictate the extent to which firms can satisfy their stakeholders. The authors introduce a conceptual model that takes the elements of authentic leadership and business model flexibility into account to explain CSR heterogeneity.

scholarly journals Service innovation in product-centric firms: a multidimensional business model perspective

2014 ◽  
Vol 29 (2) ◽  
pp. 96-111 ◽  
Author(s):  
Daniel Kindström ◽  
Christian Kowalkowski
Keyword(s):  
Business Model ◽  
Empirical Data ◽  
Business Models ◽  
Service Innovation ◽  
Model Framework ◽  
Content Type ◽  
Resources And Capabilities ◽  
Practical Implications ◽  
Collection Methods ◽  
Model Approach

Purpose – This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation. Design/methodology/approach – Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods. Findings – Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context. Research limitations/implications – Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth. Practical implications – Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework. Originality/value – By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.

Competitive advantage in the new social care marketplace: a new theoretical perspective

2014 ◽  
Vol 17 (1) ◽  
pp. 5-15
Author(s):  
Patricia Dearnaley
Keyword(s):  
Competitive Advantage ◽  
Business Models ◽  
Social Care ◽  
Theoretical Perspective ◽  
Secondary Data ◽  
Original Research ◽  
Research Approach ◽  
Content Type ◽  
New Perspective ◽  
The Uk

Purpose – Changes in the UK social care sector over the past 20 years have effected a fundamental shift in commissioning and delivery relationships. This “quasi-market” challenges existing theory and models around competitive advantage. This study, as outlined in two earlier articles, addressed weaknesses in the defining framework for analysis and business planning in this new environment; the purpose of this concluding paper is to propose a new perspective for those interested in entering this market. Design/methodology/approach – The original research comprised a constructive research approach through a single holistic case study, using qualitative research methods including document analysis, interviews, secondary data, observations and facilitated meetings. Findings – This final paper offers a structured framework of analysis and response: the External Drivers Model. Research limitations/implications – The model was developed for a scenario impacting upon a social housing agency, with ambitions to enter this market as a new provider; it may require further research to establish its generalisability to other organisations and other sectors. Originality/value – This series of three papers adds to existing knowledge by critiquing current business models, and positing a potential development to existing contingency theory: the External Drivers Model. The study has resulted in a number of outputs including an outline of tools to assist in using the model.

scholarly journals Six ways to build circular business models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nancy Bocken ◽  
Paavo Ritala
Keyword(s):  
Business Model ◽  
Resource Use ◽  
Business Models ◽  
Strategic Decisions ◽  
Strategic Choices ◽  
Value Capture ◽  
Content Type ◽  
External Stakeholders ◽  
Different Types ◽  
Business Cases

Purpose Circular business models can improve resource use in a financially and environmentally feasible way. However, companies struggle to choose among the vast variety of ways to achieve circularity within a business model. The purpose of this paper is to offer a pragmatic guide for making strategic decisions on circular business models. Design/methodology/approach This paper develops a conceptual model of six different strategic approaches to circular business models and provides examples to business cases and practice to illustrate these. Findings This study identifies two critical strategy choices companies should make. First, an innovation strategy addresses the extent to which circularity is achieved with internal or external stakeholders. Second, a resource strategy addresses how companies achieve circularity by narrowing, slowing or closing resource loops. Using examples from business practice, this study illustrates how the combinations of these two strategies can be used to design competitive circular business models. Key managerial questions are also identified to help decide upon a feasible strategy for circular business model innovation. Originality/value While different types of circular business models have been described, it is less clear what the strategic choices are that companies need to make to find feasible business cases for circularity in terms of value proposition, value creation and delivery and value capture. This study outlines these through a “circular business model strategy framework”.

scholarly journals Business model innovation and value-creation: the triadic way

2018 ◽  
Vol 29 (5) ◽  
pp. 883-906 ◽  
Author(s):  
Tor Wallin Andreassen ◽  
Line Lervik-Olsen ◽  
Hannah Snyder ◽  
Allard C.R. Van Riel ◽  
Jillian C. Sweeney ◽  
...  
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Research Question ◽  
Conceptual Modeling ◽  
Sustainable Business ◽  
Content Type ◽  
New Business ◽  
The Relationship ◽  
Is Value

Purpose Building on the multi-divisional business model (M-model), the purpose of this paper is to develop a better understanding of triadic business models – T-models – and how they create value for their three categories of stakeholders, i.e., the suppliers, the platform firm and the buyers. The research question that guides the present study is twofold: How is value created individually and collectively in triadic business models and what might challenge their sustainability? Design/methodology/approach Anchored in extant literature and a process of conceptual modeling with empirical examples from Uber, a new business model archetype was developed for two-sided markets mediated by a middleman. Findings The paper provides a theoretically and conceptually derived roadmap for sustainable business in a triadic business model, i.e., for the buyers, sellers and the platform firm. This model is coined the T-model. A number of propositions are derived that argue the relationship between key constructs. Finally, the future beyond the T-model is explored. Research limitations/implications The paper identifies, illustrates and discusses the ways in which value is created in sustainable T-models. First, value is created from a number of sources, not only from lower transaction costs. Second, it is proposed that it is not about a choice of either M-model or T-model but rather a continuum. Toward 2050, technology in general and Blockchain specifically may for some transactions or services, eliminate the need for middlemen. The main conclusion is that despite this development, there will, for most organizations, be elements of the M-model in all or most T-model businesses. In short: middlemen will have elements of the M-model embedded in the T-model when co creating value with buyers and sellers. Originality/value While two-sided T-models are not new to the business area, surprisingly no papers have systematically investigated, illustrated, and discussed how value is created among and between the three stakeholder categories of the T-model. With this insight, more sustainable T-models can be created.

Business models for product-oriented house-building companies – experience from two Swedish case studies

2015 ◽  
Vol 15 (4) ◽  
pp. 449-472 ◽  
Author(s):  
Jerker Lessing ◽  
Staffan Brege
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Business Models ◽  
Holistic Approach ◽  
Structured Interviews ◽  
Content Type ◽  
Alternative Approach ◽  
Target Segment ◽  
Successful Approach ◽  
House Building

Purpose – The purpose of this study is to describe and analyse the business model of product-oriented house-building companies and, hence, bridging the gap of knowledge on this topic. Product-orientation implies an alternative approach to house-building, requiring new knowledge about business models and its characteristics. The balance and fit between the main business model dimensions is specifically focused on to emphasise the importance of a holistic approach. Design/methodology/approach – This study is based on a case study with two leading Swedish, product-oriented house-building companies. Semi-structured interviews with company executives, document studies, site and factory visits, along with seminars at the companies are the main data sources. Theories on business models and product orientation form the theoretical foundation for the study. Findings – The case studies describe two successful companies that used end-customer knowledge to identify a target segment, develop an offering and sequentially increase control over the production and supply chain, with limited investments. This indicates that a market-based outside-in perspective is a successful approach to establish viable house-building concepts with a balance between the business model’s dimensions. Practical implications – The knowledge brought forward in this study is beneficial for practitioners that can learn about product-oriented house-building and how this must be reflected in the company’s business model to be successfully applied. Social implications – The study brings forward knowledge about house-building business models that can contribute to increased house-building targeted on certain customer segments. This can be beneficial in terms of decreased costs and increased volumes of new-built, high-quality homes for a variety of customers on the market. Originality/value – Business models for product-oriented house-building companies are a scarcely covered topic in previous research, and hence, this study provides knowledge of interest for both researchers and practitioners. The case studies reveal unique information of how two companies developed their successful concepts.

A European banking business models analysis: the investment services case

2018 ◽  
Vol 26 (1) ◽  
pp. 35-57 ◽  
Author(s):  
Paola Musile Tanzi ◽  
Elena Aruanno ◽  
Mattia Suardi
Keyword(s):  
Business Model ◽  
Asset Management ◽  
Business Models ◽  
Research Question ◽  
Model Analysis ◽  
European Level ◽  
Content Type ◽  
European Banking ◽  
Risk Takers ◽  
Global Banks

Purpose Business Model Analysis is acquiring increasing visibility in the European banking regulatory framework, following the European Banking Authority guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP), developed to assess business and strategic risks (EBA, 2014, 2015a, 2015b, 2015c). Starting from a selected literature review, in the paper, the authors analyse business models set up by financial intermediaries, bank and non-banks, for the distribution of investment services, first by comparing European niche players with European banking global players, and second, comparing European niche players among themselves to understand the evolution of business models for the distribution of investment services at European level. The research is supported by the Baffi–Carefin Research Centre at the Bocconi University (Italy), in collaboration with ANASF, the Italian Association of Financial Advisors (Italy). Design/methodology/approach The authors consider a sample of European financial players from 2009 to 2014. The authors’ focus is on France, Germany, Italy, The Netherlands, Spain and the UK; overall the authors’ handmade data set is based on 162 annual reports. The authors follow two main questions: Do the niche players, as they are focused on the distribution of investment services, have an upper limit to profitability, compared to the global players, as risk-takers in many financial areas? How is the business model of niche players changing, facing increasing competition and regulatory pressures? Findings Answering the first research question, the highest net profitability is found in the niche players group; the global players, as risk-takers, achieve lower remuneration, in contrast with the risk premium theory. The results were assessed over a limited period, however, deemed in line with the company’s strategic planning horizon. Answering the second research question, the authors focus on the case of niche players, using a cluster analysis. The authors identify three different business models: most dynamic niche players, which combine investment services, insurance and welfare services, achieving the highest margins and stability; players mainly focused on asset management, whose key vulnerability is the degree of open architecture, especially in light of future MiFID 2 implementation; and players mainly focused on the creation of well-structured on-line platforms, which offer also brokerage services, thereby reducing their marginality and potentially increasing their business risk. Research limitations/implications Despite the limited time series, the authors’ research gives some inputs for those interested in deepening the business model analysis focus on the distribution of investment services and the business and strategic risk assessment, both for the global banks and the niche players (banks and non-banks). Practical implications The authors’ results could be of some interest during the strategic assessment of global banks and niche players, both adopting an internal perspective or an external one, as regulator. Social implications By giving some specific insights into the assessment and comparison of business and strategic risks among global and niche players, the authors’ research provides the basis for further research in the field of the distribution of investment services. Originality/value The originality mainly regards the business model risk perspective and the focus of the authors’ analysis: the distribution of investment services. This sector, unlike the asset management, does not have an easily recognisable group of comparables at European level, all the European countries analysed have very different business models. This research avails of an original database, that is unique to Europe.

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