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Business Model Evaluation: Quantifying W almart's Sources of Advantage
Author(s) -
BreaSolís Humberto,
CasadesusMasanell Ramon,
GrifellTatjé Emili
Publication year - 2015
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.1190
Subject(s) - representation (politics) , business model , profit (economics) , strategic management , computer science , business , marketing , industrial organization , management science , process management , economics , microeconomics , politics , political science , law
We develop an analytical framework on the basis of the economics of business performance to provide quantitative insight into the link between a firm's business model choices and their profit consequences. The method is applied to Walmart by building a qualitative representation of its business model and mapping that representation on an analytical model that quantifies the company's sources of advantage over time. The analysis suggests that the effectiveness of a particular business model depends not only on its design (its levers and how they relate to one another) but, most importantly, on its implementation (how the levers are pulled). Copyright © 2014 Strategic Management Society.