Business Model and Strategy: In Search of Dialog through Value Perspective

Abstract

Value is the unit of analysis for a business model, and also the main goal of strategy. From both an academic and a practical point of view, the question that guides the definition of a business model is: how to create, configure and appropriate value? Strategic management and business model theories have already progressed significantly in some aspects of value, but present major misunderstandings to answering this question, especially because they still work from a static view of value, based only in the content or result. The paper aims to develop a theoretical articulation of business model and strategy through a dynamic perspective of value, based on the combination of strategy content and strategy process. In order to accomplish this task, it tooks contributions from several fields of knowledge underpinning value, such as economics, marketing, strategic management and organizational configuration. The main proposition is that a business model is an emergent structure, defined through the interplay of strategic decisions for discovering and recognizing opportunities (value creation) but also for implementing (value configuration) and profiting from them (value appropriation).

Coopetition through Multisided Platforms Business Model: A Case Study of FEBRAFAR Value Cycle

“…Using a value cycle perspective, as proposed by Meirelles (2019), to comprehensively examine the construction of business models within this multisided platform context, data analysis here presented encompass key categories aligned with the value creation, configuration, and appropriation strategies -probing into inquiries encompassing (a) the methods through which the platform generates value for its diverse customer segments, (b) the intricate contours of its value configuration endeavors, and (c) its strategies for value appropriation to ensure both sustainability and growth. FEBRAFAR encountered a series of challenges encompassing value creation, configuration, and appropriation in its endeavor to establish an efficiently functioning multisided platform (refer to Table 3).…”

“…Notably, the endeavor to enhance value creation and appropriation for every cohort of participating constituents resulted in value configuration changes through a more active coordination by FEBRAFAR. This iterative process engenders a dynamic cycle of value creation, configuration, and appropriation (Meirelles, 2019) reverberating to the platform itself.…”

“…From its inception, the organization has assumed a role extending beyond just being a consortium of drugstores with significant negotiating power in commercial transactions, giving rise to a network effect (Evans & Schmalensee, 2013;Hagiu, 2014). The platform fundamentally embodies the identification of value-creation opportunities (Meirelles, 2019). Its core mission has consistently involved sharing successful experiences, disseminating relevant information, acting as a foundation for strategic planning, and providing unique services to its members.…”

“…As defined by Meirelles (2019), value configuration entails the process of operationalizing opportunities by orchestrating resources and activities both internally and externally, thereby pursuing a dynamic and streamlined value framework in alignment with the organization's evolutionary trajectory. Furthermore, value configuration entails an ongoing enhancement of the quality of interactions among participants within the multisided platform.…”

“…According to Meirelles (2019), the construction of a business model derives from entrepreneurs' interconnections as they navigate through the intricacies of value creation, configuration, and appropriation predicaments (refer to Figure 2). These interconnections fundamentally embody a dialectical process (Van de Ven, 2007) rooted in the internal quandaries that arise amongst stakeholders -whether internal among members and partners or external between the company and the market.…”