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

Conceptual Basis 21 / 225Table 7: Evolution From "Old" Towards "New" Business ModelsOld Business ModelsTransactionProduct priceSingle productInternal value chainUnit of analysis: companySource: Adapted from Bieger et al. (2002)New Business ModelsLasting customer relationship managementComplex revenue conceptIntegrated product conceptVirtual companies with diverse value chainsUnit of analysis: business modelThese and other developments describe the transition from the “old” to the “new” business worldand are summarised in the table above. The new business world focuses increasingly more on theinteraction of partners in a network or the transition of single transactions into lasting relations.Hence, Zott & Amit (2004) argue that these dramatic changes resulted in revolutionaryinnovations that could no longer be explained using traditional frameworks. This shift inbusiness models calls for new frameworks that can handle the changes. According to researchersthe business model concept could be a suitable framework (Hedman & Kalling, 2003; Stähler,2002). The following table summarises the move from traditional theories towards the newbusiness model concept using tourism as an example:Table 8: The Business Model Concept as a New Theory to Understand a CompanyTheory Core Theory Relevant strategicunitMarket-based view Competitive Strategic businessadvantage through unit (i.e. stableoptimal focus on product-marketneeds and wants of combinations)relevant marketsResource-based viewNetwork economyCompetitiveadvantage throughresources (such ascore competenciesthat are hard toimitate or match)Competitiveadvantage throughoptimal configurationof resources andoutput incompany/networksSource: Adapted from Bieger & Agosti (2005, pp. 5, 6)Company (i.e. unitthat has access to allresources)Business modelExample: TourismSBU – specificstrategy: hotel forfamiliesCable car / mountainrailways with corecompetency in eventmanagementTheme park with anindividual financingmodel for eachattraction2.2.2 Summary of Business Model DefinitionsThe business model concept has gradually more attracted attention over the past years and isfrequently employed in theory and practice (Magretta, 2002; Osterwalder, Pigneuer, & Tucci,2005; Shafer, Smith, & Linder, 2005). Among the first to define and describe the business modelconcept were researchers in the area of e-commerce (Afuah & Tucci, 2003; Mahadevan, 2000;