Management of Art Galleries – Business Models - Universität St.Gallen

Conceptual Basis17 / 225It started off in the 1960s with the PIMS study (Profit-Impact of Market Strategies). The PIMSstudy demonstrates that a relatively high market share in combination with high quality productshas a positive impact on success. The Portfolio Matrix by the Boston Consulting Group (1968)was another milestone in the development of success factor research. Its key benefit is theconceptual analysis of all products existing in the company. In a simple matrix these arecompared and strategies can be derived from this. In 1982 Peters & Waterman published the 7-S-differentiatingtraits of successfulfirms. This was then followed by the Hidden Champions concept by Simon (1996). Simonobserved medium-sized enterprises that were largely unknown to a wide public and analysedtheir success strategies. Finally in 2004 Kim & Mauborgne published the Blue Ocean Strategy,which observes success strategies of profitable business models.Modell that still serves today as a tool for identifying relevant2.1.2 Target of Success Factor ResearchVarious factors influence the success of a company but the role of success factor research is toidentify those that are the most important, most critical. Critical success factors are those thathave the most impact on the success of a company and hence build the basis for the strategicmanagement of a company (Daschmann, 1994; Göttgens, 1996).Of course, no single factor is solely responsible for the success of a company. Therefore, successfactor research has highlighted the interdependencies of success factors. Göttgens in particularhighlights the fact that an analysis concentrating on the combination of success factors is the bestway to really understand the source of internal success. . Furthermore, Göttgens introduces theidea that the impact of success factors can vary in time. Some success factors can haveimmediate impact on success, while the impact of others is delayed. The following figure givesthree examples to demonstrate the timely impact of success factors.Figure 2: Impact of Success Factors in Reference to TimeSource: Göttgens (1996, p. 24)In the first picture the impact of success factor A is degressive. With success factor Aimplemented to only a small degree, success is reached very quickly. A very high degree ofimplementation, however, leads to only marginal success. With success factor B, the impact islinear. The more the factor is implemented, the more impact it has on success. The final successfactor C demonstrates a progressive impact. There are intense resources and time needed to reach