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

Conceptual Basis 27 / 2252.2.3.1 Components of the Adapted Bieger et al. Business Model ConceptOn the basis of the eight trends identified, the findings of several researchers (Amit & Zott, 2000;Nehls & Baumgartner, 2000; Rüegg-Stürm, 2000; Timmers, 2000; Tomczak, Schögel &Birkhofer, 1999; Treacy & Wiersema, 1995; Wölfle, 2000; zu Knyphausen-Aufseß & Meinhardt,2000) and the comparison conducted above, the following presents the adapted Bieger et al.(2002) business model concept. A business model can be defined as follows (Bieger &Lottenbach, 2001):“A business model is the description of the way in which a company, a corporate system or anindustry creates value on the market. This requires answers to the following questions:Which benefits do we transfer / What job has to be done?Which customers do we target?How is this benefit communicatively anchored in the relevant market?How are revenues generated?Which growth concept is pursued?Which core competencies are necessary?What is the range of one’s own company?Which cooperation partners are selected?Which coordination model is used?"The following table demonstrates their practical usage, comparing two power-tool providers.Table 12: Components of the Adapted Bieger et al. Business ModelBusiness ModelComponentsWhich benefits do wetransfer? What job has to bedone?Value propositionWhich customers do wetarget?CustomerHow is this benefitcommunicatively anchored inthe relevant market?Communication conceptHow are the revenuesgenerated?Revenue conceptWhich growth concept ispursued?Growth conceptTraditional Power ToolCompanySales of industrial andprofessional power tools andaccessoriesSame customer (crew leaders,on-site purchasing managers)Distribution channelsExpensive revenuemanagement system; lowmargins, high inventory turnov.Sell more power tools(volume); increase assets oncustomer’s balance sheetHilti’s Tool FleetManagement SystemLeasing a comprehensivefleet of tools to increasecontractors’ on-siteproductivitySame customer butdifferent position (CEOsand CFOs)Strong direct salesapproachSimple pricing systems:one bill every month foreverything; higher marginsIncrease quantity oflease/subscription model;offer services not products