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1 – 10 of over 31000Roberto Marx, Pedro Siqueira de Magalhães and Felipe Ferreira de Lara
The purpose of this paper is to identify low-costbus business models from different parts of the world and check their applicability in the Brazilian market. It also identifies…
Abstract
Purpose
The purpose of this paper is to identify low-costbus business models from different parts of the world and check their applicability in the Brazilian market. It also identifies crucial factors for the development of that kind of business and investigates the relationship between low-cost buses and other modes of transport. This research analyzes every relevant aspect to the applicability of low-cost business models in Brazil, driving to discussions and conclusions. The gains on the development of low-cost bus systems in Brazil may have a wide reach, from personal to general public benefits.
Design/methodology/approach
Business models for low-cost bus systems are used to analyze in a qualitative approach. The data are collected through semi-structured interviews, direct observations and documental basis. In addition, innovations over the previous five years are evaluated in order to establish a comparative pattern between companies.
Findings
There is a great potential in the Brazilian passenger market for the entrance of low-cost bus companies. The only question is just when it is the right time to enter that market. Most of the negative points presented for the implementation of a low-cost company are related to the current economical and political crisis in Brazil. It was identified as a potential cause for the overall decrease of the passengers market in recent years, and specifically of the bus passengers market.
Originality/value
The recent regulation changes, the high demand for passengers and even the similarity of possible routes in Brazil to the ones in Europe and in the USA make Brazil a fertile soil for the development of that kind of business. A similar price mechanism to the ones applied worldwide was also identified as doable in Brazil.
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Nicolas Kachaner, Zhenya Lindgardt and David Michael
The authors warn of an emerging competitive crisis. Multinationals are disrupting competitors and pioneering new price points and applications in the developed world with low‐cost…
Abstract
Purpose
The authors warn of an emerging competitive crisis. Multinationals are disrupting competitors and pioneering new price points and applications in the developed world with low‐cost offerings created for rapidly developing economies. This paper aims to address this issue.
Design/methodology/approach
The paper explains how smart low‐cost players invest in true innovation targeted at the large, low‐income segments of the population.
Findings
The paper charts a process for implementing low‐cost innovation.
Practical implications
Corporate leaders too often underestimate the power of low‐cost models to affect their business and wrongly focus their innovation on new products that are more sophisticated, and, thus, more expensive than the models they replace.
Originality/value
A low‐cost innovation might cannibalize some of your current profit, but, most likely, it will also expand your market scope in a significant way.
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Sunil Sharma, Mukund R. Dixit and Amit Karna
Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent…
Abstract
Purpose
Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market.
Design/methodology/approach
This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation.
Findings
The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets.
Research limitations/implications
The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity.
Practical implications
Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency.
Originality/value
Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.
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Ramon Casadesus‐Masanell and Joan E. Ricart
The purpose of this paper is to reflect on competitiveness by using the business model concept and to understand the need to adapt business models to changes in the environment.
Abstract
Purpose
The purpose of this paper is to reflect on competitiveness by using the business model concept and to understand the need to adapt business models to changes in the environment.
Design/methodology/approach
Using Catalonia as a context, the paper derives recommendations by presenting and analyzing examples of companies, referred to as “new generation companies,” that have innovated in their business models. The case studies illustrate the contributions of the business model notion to the competitiveness debate.
Findings
Reviewing the history and contemporary practice of Catalan firms, examples of “new generation” companies are analyzed to derive recommendations for managers seeking to reconfigure their business models to support innovation and internationalization. Since business models sit at the core of competitiveness, they must be the focus of managers aiming to create efficient firms that foster sustained competitive advantage.
Research limitations/implications
The analysis is based on a small number of case studies.
Originality/value
The business model approach described in this paper enriches the current debate on competitiveness by focusing the analysis at the level of the firm.
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Richard Klophaus and Frank Fichert
There is a strong academic and professional interest in the changing business model of LCCs in Europe. Recently, even Ryanair which is often considered a European LCC role model…
Abstract
There is a strong academic and professional interest in the changing business model of LCCs in Europe. Recently, even Ryanair which is often considered a European LCC role model has departed from the point-to-point paradigm by offering transfers within its own network. We first provide a general overview of recent changes in the business model of airlines that used to be categorized as LCCs. We then add to existing studies on LCC network strategies toward building connections. While we distinguish different approaches to accommodate transfer passengers, our analysis focuses on mesh networks as an airline network topology other than hub-and-spoke networks to provide online connections. A schedule analysis of Ryanair’s direct and indirect services at its base at Porto airport exemplifies that a mesh network might allow LCCs to go beyond stand-alone operations to become network carriers without requiring a complete transition of the generic LCC business strategy.
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Belaynesh Teklay, Kevin E. Dow, Davood Askarany, Jeffrey Wong and Yun Shen
This paper examines the relationship between transportation quality, customer satisfaction and profitability. Specifically, this study examines the simultaneous and asynchronous…
Abstract
This paper examines the relationship between transportation quality, customer satisfaction and profitability. Specifically, this study examines the simultaneous and asynchronous effect of quality of transportation services on customer satisfaction and financial performance and then performs the same examination in relation to the effect of customer satisfaction on financial performance. The partial least squares approach to structural equation modelling is used to examine longitudinal data from 1995 to 2018 from the US airline industry. The findings suggest that low service quality in transportation has adverse effects on customer satisfaction and financial performance, while the impact of customer satisfaction on financial performance in the US Airline transportation industry is mixed. The authors found that the impact of customer satisfaction on financial performance is significant in full-service airlines but not in low-cost airlines. Surprisingly, the authors found no significant direct relationship between transportation quality and financial performance in the US airline industry.
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Vergine Virsta Yassiva, Anjar Priyono and Wisnu Pambudi Wibowo
This study aims to analyse how a hotel company manages ambidexterity when operating different business models in different markets located in the same country.
Abstract
Purpose
This study aims to analyse how a hotel company manages ambidexterity when operating different business models in different markets located in the same country.
Design/methodology/approach
This research was conducted using a qualitative case study, and the subjects were selected using the theoretical sampling technique. A corporation managing two hotel business units located in the same city but operating different business models – a premium and a low-cost business model – were selected as subjects.
Findings
The empirical evidence revealed that an ambidextrous business model can be realized through integration or separation of appropriate domains of business activities. The empirical findings further showed that exploitations are easier to integrate than explorations.
Practical implications
The authors found that firms using structural separation for managing premium and low-cost business models can avoid market cannibalism and achieve synergies between different business models if business model ambidexterity is well managed.
Originality/value
This study extends research in the area of ambidexterity and business models. It responds to calls to examine how firms using structural separation implement business model ambidexterity in practice, particularly in service sectors. By analysing the details of activities within the business model, the authors advance the understanding of which domains are suitable for an integration or separation approach.
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Patrick Holzmann, Robert J. Breitenecker and Erich J. Schwarz
The purpose of this paper is to analyze the business models that 3D printer manufacturers apply to commercialize their technologies. The authors investigate these business models…
Abstract
Purpose
The purpose of this paper is to analyze the business models that 3D printer manufacturers apply to commercialize their technologies. The authors investigate these business models and analyze whether there are business model patterns. The paper describes the gestalt of the business model patterns and discusses differences and similarities.
Design/methodology/approach
The authors review the literatures on business models and 3D printing technology. The authors apply a componential business model approach and carry out an in-depth analysis of the business models of 48 3D printer manufacturers in Europe and North America. The authors develop a framework focusing on value proposition, value creation and value capture components. Cluster analysis is used to identify business model patterns.
Findings
The results indicate that there are two distinct business model patterns in the industry. The authors termed these patterns the “low-cost online business model” and the “technology expert business model.” The results demonstrate that there is a relationship between business model and technology. The identified patterns are independent of age, company size and country of origin.
Research limitations/implications
The empirical results complement and extend existing literature on business models. The authors contribute to the discussion on business models in the context of novel technology. The technology seems to influence the gestalt of the business model. The sample is limited to European and North American companies and the analysis is based on secondary data.
Originality/value
This is the first empirical study on the business models of 3D printer manufacturers. The authors apply an original mixed-methods approach and develop a framework that can function as a starting point for future research. 3D printer manufacturers can use the identified business model patterns as blueprints to reduce the risk of failure or as a starting point for business model innovation.
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Fábio Lotti Oliva, Andrei Carlos Torresani Paza, Jefferson Luiz Bution, Masaaki Kotabe, Peter Kelle, Eduardo Pinheiro Gondim de Vasconcellos, Celso Claudio de Hildebrand e Grisi, Martinho Isnard Ribeiro de Almeida and Adalberto Americo Fischmann
This study aims to investigate the risks associated with managing the dispersed knowledge in inter-organizational arrangements for innovation. Specifically, it proposes a model to…
Abstract
Purpose
This study aims to investigate the risks associated with managing the dispersed knowledge in inter-organizational arrangements for innovation. Specifically, it proposes a model to analyze the knowledge management risks in open innovation, applied in four steps.
Design/methodology/approach
Initially, the authors carried out a systematic literature review (SLR) on the concepts that connect knowledge management, inter-organizational arrangements for innovation and risks. The SLR results led to a complementary theoretical review on the conceptual elements in question. Based on the findings, the authors have developed a model to analyze the knowledge management risks in open innovation, which was validated by experts. It was then studied the case of GOL Airlines, a company that uses innovation to overcome the paradox between low-cost and full service in the commercial air transportation industry, considering the application and adjustment of the proposed model.
Findings
Open innovation is one of the inter-organizational arrangement types most applied in the context of innovation. Relations between agents are the primary sources of risks when managing the dispersed knowledge in these arrangements. The authors have found five main risks associated, namely, risk of the innovative effort does not reach the expected objective, risk of knowledge transfer being ineffective, risk of misappropriation of value, risk of dependency (lock-in) and risk of relations.
Practical implications
The practical implication is the proposition of a procedure for applying the model to analyze the knowledge management risks in open innovation, which makes it a prescriptive model for identifying risks. The proposed model is described in four steps, namely, to identify the agents in the environment of the value of open innovation; to identify the types of relations of each agent; to consider the barriers to knowledge management in innovation; and to assess the risks considering the possibilities derived from the agents, their relationships and the barriers. The model is applied in the GOL case and the results are presented.
Originality/value
First, it uses a novel approach to investigate open innovation while studying its risks. This approach considers the knowledge is dispersed and flows from one organization to another through a combination of relations inside the environment of value where the open innovation materializes. Second, it contributes to theory development by opening a research front that fuses four areas: risk management, knowledge management, innovation and inter-organizational arrangements. Third, this paper proposes a theoretical model and presents its operationalization. The study aims to make an impact beyond academia and uses a case study to illustrate the model application in a real and interesting open innovation project to support the business model at GOL Airlines.
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Nanond Nopparat and Damien Motte
Present for more than 20 years, 3D food printing (3DFP) technology has not experienced the same widespread adoption as its non-food counterparts. It is believed that relevant…
Abstract
Purpose
Present for more than 20 years, 3D food printing (3DFP) technology has not experienced the same widespread adoption as its non-food counterparts. It is believed that relevant business models are crucial for its expansion. The purpose of this study is to identify the dominant prototypical business models and patterns in the 3DFP industry. The knowledge gained could be used to provide directions for business model innovation in this industry.
Design/methodology/approach
The authors established a business model framework and used it to analyse the identified 3DFP manufacturers. The authors qualitatively identified the market’s prototypical business models and used agglomerative hierarchical clustering to extract further patterns.
Findings
All identified 3DFP businesses use the prototypical business model of selling ownership of physical assets, with some variations. Low-cost 3D food printers for private usage and dedicated 3D food printers for small-scale food producers are the two primary patterns identified. Furthermore, several benefits of 3DFP technology are not being used, and the identified manufacturers are barely present in high-revenue markets, which prevents them from driving technological innovation forward.
Practical implications
The extracted patterns can be used by the companies within the 3DFP industry and even in other additive manufacturing segments to reflect upon, refine or renew their business model. Some directions for business model innovation in this industry are provided.
Originality/value
To the best of the authors’ knowledge, this is the first quantitative study to give an account of the current 3DFP business models and their possible evolution. This study also contributes to the business model patterns methodological development.
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