The new retail model: global reach demands omni-channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guillaume Do Vale ◽  
Isabelle Collin-Lachaud ◽  
Xavier Lecocq
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Academic Research ◽  
Transformation Process ◽  
Content Type ◽  
New Business ◽  
Business Cases ◽  
Established Firms ◽  
New Consumer ◽  
Global Reach

Purpose To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a digital transformation of the traditional business model. However, business cases on how traditional retailers are shifting from multi-channel to omni-channel retailing are lacking. This paper aims to explore the different issues and organizational paths during the transformation of a business model. Design/methodology/approach This study is based on a qualitative multiple case study of five retailers with a global reach currently implementing an omni-channel business model. Findings This research sheds light on three main issues encountered by retailers and the different underlying decisions when moving toward an omni-channel business model. The first relates to revenue attribution across channels, which involves rethinking traditional key performance indicators to give incentives to stores when promoting digital offers. The second issue concerns the supply chain decisions associated with cross-channel operations. The third issue relates to the delicate balance between global reach (digital channel) and local reach (specific store) for communication on social media and marketing decisions on pricing. This study provides empirical evidence about the variety of choices that retailers make to cope with the issues during the implementation of an omni-channel business model. Originality/value This work explores the issues faced by established firms when moving toward a new business model that is the hybridization of two existing business model managed separately. It provides comprehensive and clear illustration of how to manage such a business model transformation process that can be used by both business strategy practice and academic research.

Designing innovative business models with a framework that promotes experimentation

2016 ◽  
Vol 44 (1) ◽  
pp. 11-19 ◽  
Author(s):  
Cara Wrigley ◽  
Karla Straker
Keyword(s):  
Content Analysis ◽  
Business Model ◽  
Business Models ◽  
Qualitative Content Analysis ◽  
Content Type ◽  
Sustained Competitive Advantage ◽  
New Business ◽  
Business Cases ◽  
The Creation ◽  
New Business Models

Purpose – Business models to date have remained the creation of management, however, it is the belief of the authors that designers should be critically approaching, challenging and creating new business models as part of their practice. This belief portrays a new era where business model constructs become the new design brief of the future and fuel design and innovation to work together at the strategic level of an organisation. Design/methodology/approach – The purpose of this paper is to explore and investigate business model design. The research followed a deductive structured qualitative content analysis approach utilizing a predetermined categorization matrix. The analysis of forty business cases uncovered commonalities of key strategic drivers behind these innovative business models. Findings – Five business model typologies were derived from this content analysis, from which quick prototypes of new business models can be created. Research limitations/implications – Implications from this research suggest there is no “one right” model, but rather through experimentation, the generation of many unique and diverse concepts can result in greater possibilities for future innovation and sustained competitive advantage. Originality/value – This paper builds upon the emerging research and exploration into the importance and relevance of dynamic, design-driven approaches to the creation of innovative business models. These models aim to synthesize knowledge gained from real world examples into a tangible, accessible and provoking framework that provide new prototyping templates to aid the process of business model experimentation.

Sustainable life cycle offers through cooperation

2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Service Providers ◽  
Construction Sector ◽  
Content Type ◽  
New Business ◽  
Societal Level

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

scholarly journals Unpacking Business Model Innovation Through an Attention-Based View

M n gement ◽  
2020 ◽  
pp. 38-60 ◽  
Author(s):  
Alexis Laszczuk ◽  
Julie C. Mayer
Keyword(s):  
Longitudinal Study ◽  
Business Model ◽  
Business Model Innovation ◽  
Ongoing Process ◽  
New Business ◽  
New Ideas ◽  
Established Firms

Attention is considered as a critical driver for business model (BM) innovation in established firms, where existing activities already absorb internal actors’ time and effort. Although previous studies acknowledge the role of attention to detect opportunities or to generate new ideas, we still need to understand how actors deal with attentional tensions inherent in the development of a new additive BM. This article addresses this issue by adopting an attention-based view of BM innovation, that is, by examining the forms of attention involved in the process of developing a new BM. Through a longitudinal study in a small consulting company, we unfold an incremental and ongoing process of new BM development. Our findings identify three attentional stages triggered by specific mechanisms that drive BM innovation, from detecting new ideas to their implementation. The attentional perspective we use in this study revises the role of a prevailing BM in the emergence of new business logics in established firms. While previous studies consider it as an impediment for BM innovation, we reveal that actors can develop new BMs by navigating between differentiation and consistency with the prevailing BM.

Harmonious entrepreneurship – a new approach to the challenge of global sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Anthony Kirby ◽  
Iman El-Kaffass
Keyword(s):  
Business Model ◽  
Traditional Approach ◽  
Secondary Data ◽  
Wealth Creation ◽  
Content Type ◽  
Global Sustainability ◽  
New Business ◽  
The Status ◽  
The Difference ◽  
Definition Of

PurposeThe article is intended to consider how entrepreneurship needs to adapt if it is to address the global sustainability challenge. The intention is to propose a new business model that recognises the interconnectedness of the global ecosystem.Design/methodology/approachThe article analyses two case studies purposively written to demonstrate the difference between the traditional entrepreneurship approach, dating back to the 19th century and the proposed harmonised one. Both cases are based on secondary data and personal field observation.FindingsWhile the two cases focus on wealth creation, job generation and innovation, the traditional approach is shown to have had a long-term deleterious impact on both society and the environment, whereas the proposed harmonised approach impacts positively. The article recognises the multifaceted nature of the sustainability challenge and that the three elements (economy/commerce, society and environment) are interconnected. If there is a change in the status of one the other, connected facets will change or will need to be changed. Thus any solution needs to address all three facets.Social implicationsThe proposed business model will be of interest to scholars and practitioners of entrepreneurship and sustainability, as well as to policy makers and educators.Originality/valueApart from proposing a new business model that will address the sustainability challenge, the article provides a definition of harmonious entrepreneurship and identifies the conditions required for it to be met, as well as the characteristics of the harmonious entrepreneur.

Business Model

2012 ◽  
pp. 100-131 ◽  
Author(s):  
Arash Najmaei
Keyword(s):  
Business Model ◽  
Mental Model ◽  
Business Models ◽  
Disruptive Innovation ◽  
Future Research ◽  
Disruptive Technology ◽  
New Business ◽  
Managerial Implications ◽  
Established Firms ◽  
Strategic Logic

Today’s world of business is increasingly witnessing exemplary firms which introduce new business models, exploit new markets and disrupt established firms in order to create a unique competitive position. Although the theoretical and conceptual posture of this phenomenon is well grounded and explained in the extant literature on disruptive innovation, little is known about strategic logic of this phenomenon. In other words, the managerial paradigm or cognitive and mental model that underlies the orchestration of micro- and macro-organizational mechanisms of a disruptive move, such as market and technological knowledge, have surprisingly received little attention. In this sense, an analytical review of literature suggests that strategic logic of a disruptive technology can be well presented through the lens of business model (BM) and its innovation. Accordingly, it is argued that business model represents a mental model which underlines activities such as acquisition of market and technological insights, opportunities and requisite actions required for transforming a disruptive idea into a disruptive market movement. This view offers new insights into the study of disruptive phenomenon. It addresses the managerial (i.e. mental model) underpinnings of disruptiveness, instead of market, economical and technological dimensions. Business model innovation (BMI) is a disruptive change in the core logic of value creation and capture. It is a value-revolutionizing framework which explicitly delineates the strategic processes of a disruptive strategy. Thus, it is essentially a paradigm for strategizing the craft of disruptive innovation (technology). Given this view, this chapter conceptually explicates this contour and shows how BMI effectuates a disruptive technological phenomenon by presenting four propositions. Finally theoretical and managerial implications of this view are illuminated in order to furthering the practice and enhancing future research in this growing field of inquiry.

JD.com: leveraging the edge of e-business

2018 ◽  
Vol 8 (3) ◽  
pp. 1-30
Author(s):  
Allan KK Chan ◽  
Caleb Huanyong Chen ◽  
Long Zhao
Keyword(s):  
Business Model ◽  
Business Models ◽  
Corporate Strategy ◽  
The Self ◽  
Logistics System ◽  
Content Type ◽  
Long Run ◽  
New Business ◽  
Internet Finance ◽  
To Come

Subject area E-Business; Corporate Strategy; Strategic Management; Operation Management. Study level/applicability Senior undergraduate; MBA; EMBA. Case overview After development for 10 years, JD was now China’s second largest business-to-customer (B2C) e-retailer and the largest in self-operated sector. It was September 2015 when Liu Qiangdong was deciding whether to persist with JD’s self-operated model and the heavy investment in the self-built logistics system. JD’s business model had been functioning well. However, as JD grew bigger and bigger, it became too expensive to expand its logistics system. JD had not made a profit since it raised funds from investors. Liu had to come up with a good proposal before the next monthly meeting to convince them that JD would finally overtake its biggest rival, Alibaba which ran on a different business model. In addition, JD was exploiting the rural and the global markets, as well as a new business in internet finance. Facing challenges and dilemmas, should JD persist with its model? How could Liu align short-term profitability with long-run development? How could JD overcome attacks from Alibaba and other competitors? Expected learning outcomes This case is appropriate for courses in e-business and strategy, particularly those with a strong focus on doing e-business in emerging markets (e.g. China). After studying the case, students should be able to: understand the e-commerce market in China; understand business models and key strategies of e-retailers; identify and analyse the pros and cons of the self-operated business model and self-built logistics system in e-commerce; learn how to evaluate performance, strategies and business models of e-commerce companies; and extract key trends in the market and compare different strategies. 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.

Business models in the business-to-business and business-to-consumer worlds – what can each world learn from the other?

2016 ◽  
Vol 31 (8) ◽  
pp. 943-954 ◽  
Author(s):  
Ryan Neill Stott ◽  
Merlin Stone ◽  
Jane Fae
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Academic Research ◽  
Content Type ◽  
Managerial Implications ◽  
Business To Consumer ◽  
Business To Business ◽  
Practical Implications ◽  
Proper Analysis

Purpose The purpose of this research is to identify how managers can apply the results of academic research into the concept of business models for creating and evaluating possible models for their businesses. Design/methodology/approach A review of the literature is followed by two case studies, from the airline and logistics industries, followed by recommendations based on both. Findings The findings are that there is relatively weak consensus among academics as to the definition and meaning of a business model and its components, and that the notion of generic business model applies better within rather than between industries, but that the discussion is a very fertile one for developing recommendations for managers. Practical implications The managerial implications of the study are that in their planning and strategizing, managers should factor in a proper analysis of the business model they currently use and one that they could use. Originality/value The study provides a useful addition to the literature on the practical implications of business models.

Does holistic cognition frame always promote business model design?

2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
New Ventures ◽  
Model Design ◽  
Content Type ◽  
Business Model Design ◽  
Established Firms ◽  
The Relationship ◽  
Positive Effect ◽  
Holistic Cognition

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.

The growing pressures on Groupon's once-successful daily deal business

2015 ◽  
Vol 5 (6) ◽  
pp. 1-16
Author(s):  
Cathy Leung Miu Yee
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Listed Company ◽  
Subject Area ◽  
Growth Strategy ◽  
Daily News ◽  
Content Type ◽  
Future Performance ◽  
The Usa ◽  
Daily Deals

Subject area Marketing Management, Business Strategy and Promotion & Advertising. Study level/applicability Associated degree, undergraduate and graduate students as well as executives from profit-making organizations. Case overview Groupon is the world's largest daily-deal Web site and a pioneer in the group-buying industry. The major feature of the company's business model is that merchants use Groupon as a platform to offer coupons with a discounted price, and the coupon buyers can then redeem these coupons. Groupon has done business in over 50 countries and, by 2012, had over 39.5 million subscribers received its daily news. It had a 59.1 per cent share of the daily-deals market in 2013. Groupon is a publicly listed company on the NASDAQ in the USA, trading under the ticker symbol of “GPRN”. Expected learning outcomes The students' business knowledge and skills will be sharpened by working through this case, and students will be challenged to identify solutions to the marketing concerns: specifically, how the driving approach of its daily-deal business model enabled the company to adopt a growth strategy that will confront the difficulties of the emergent “golden age” of the daily-deal industry in the twenty-first century. In addition, it will also be of help to the students to take the active roles of thinker, analyst, evaluator, decision-maker and implementer to evaluate the continuing changes in a competitive environment and consider how Groupon can seize available opportunities to predict future performance by comparing data from 2008 and 2012. 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.

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