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

Conceptual Basis31 / 225Growth ConceptCompanies must constantly ask themselves how they want to secure and foster growth. Animportant prerequisite to generating growth is standards (Shapiro & Varian, 2000). Other growthstrategies can be through extension of share of wallet within the company’s own market, or toenter into other markets. A company may also grow through multiplication or through the sale ofconcepts (franchising). The following figure summarises some growth strategies:Figure 7: Growth ConceptSource: Adapted from Bieger et al. (2001, p. 55)Competence ConfigurationA crucial decision when designing the business model is the configuration of core competencies.Simply identifying core competencies is not sufficient: the company must align its corecompetencies to its value proposition and revenue model. When the company establishes theperfect fit between competencies and products offered, this will represent its unique advantageover competitors. Key competencies can be found in its human resources, technology, products,facilities, equipment, channels and brand. It is important to understand that core competenciesare those that create value. Others are generic competencies that do not create competitivedifferentiation (Johnson, Christensen & Kagermann, 2008).Osterloh & Frost (2006) summarise the configuration of competencies in the following graphic: