Business Model Concept: An Integrative Framework Proposal

Abstract

Every firm employs a particular business model seeking competitive advantage. However, this pursuit is difficult, and sometimes unsuccessful. The reasons for failure should be sought in the managers' lack of understanding of their organisations' business models, their unique building blocks, and the potential that they have. To help managers better understand business models, this paper reviews the extant literature and identifies the elements of business models cited therein. Further, considering the new needs on the changing markets and the prevailing search for sustainability beyond profit, this paper portrays essential business model elements in an integrated framework. An updated generic business model framework consists of four primary categories, namely, value proposition, value capture, value creation, and value network, and could be useful for a variety of organisations, profit and non-profit, with various mission and vision orientations and interaction with the environment.

Event sport tourism business models: the case of trail running

“…The underlying logic within BMs refers to value – how value is created, delivered and captured (Abdelkafi and Täuscher, 2016; Johnson et al , 2008; Osterwalder et al , 2005; Perić et al , 2017a, b; Roome and Louche, 2016; Zott et al , 2011). In tourism as a traditional service sector, this process of creating and capturing value (for both consumers and providers) is more complex due to the immaterial character of the tourist experience which is the ultimate value tourists are seeking (Klaus and Maklan, 2011; Perić and Wise, 2015; Prahalad and Ramaswamy, 2004; Souto, 2015).…”

Value Network as a Key Category Within Event Sport Tourism Business Model: The Case of Mercedes-Benz Uci Mountain Bike Downhill Lošinj World Cup 2018

“…For this reason, most approaches to the BM structure involve elements that reflect dynamic and transformational nature of the businesses. In other words, value proposition, value creation (involving key resources and processes), value capture, and value network are proposed as key BM categories (Perić, Vitezić and Đurkin 2017a). BM is, therefore, considered as a conceptual tool reflecting the business's core value offered to customers, its configured value network to provide that value, and its continued sustainability (Osterwalder et al 2005).…”

“…Organizations must develop new BMs, in which both value creation and value capture occur in a value network (Hamel 2000), creating a new value system within which different economic actors (i.e. partners, customers and beneficiaries, suppliers, distribution channels, and other forms of coalition) work together toward the co-creation of value (Perić et al 2017a).…”