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Reinventing Business ModelsHow Firms Cope with Disruption$
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Henk Volberda, Frans A.J. Van Den Bosch, and Kevin Heij

Print publication date: 2017

Print ISBN-13: 9780198792048

Published to Oxford Scholarship Online: December 2017

DOI: 10.1093/oso/9780198792048.001.0001

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Business Model Transformation

Business Model Transformation

Driven by Strategy or Customer?

Chapter:
(p.143) 6 Business Model Transformation
Source:
Reinventing Business Models
Author(s):

Henk Volberda

Frans van den Bosch

Kevin Heij

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198792048.003.0006

Chapter 6 explores the dynamics of business model innovation by discussing the interactions between Sony and Apple over the minidisc and the MP3 player. Seemingly, a period of business model renewal is likely to be followed by business model replication. Both renewal and replication can be internally driven, or externally driven. Combining types of business model innovation (replication versus renewal) with business model orientation (strategy-driven versus customer-driven) gives four variations of business model transformation: exploit and improve, explore and dominate, exploit and connect, and explore and connect. This chapter considers four firms for illustration: DSM, the Port of Rotterdam Authority, NXP Semiconductors, and IHC Merwede. If one thinks of the four approaches as quadrants in a matrix, these cases show how firms can change their position within that matrix over time.

Keywords:   business model transformation, strategy-driven, customer-driven, business model matrix, explore and dominate, explore and connect, exploit and improve, exploit and connect

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