A Research Framework for Business Models: What Is Common Among Fast Fashion, E-Tailing, and Ride Sharing?

46 Pages Posted: 10 Oct 2018

See all articles by Gerard P Cachon

Gerard P Cachon

The Wharton School - Operations, Information and Decisions Department

Date Written: September 16, 2018

Abstract

Abstract Every firm has a business model, which is the collection of strategic decisions that determine how the firm generates a sustainable enterprise through the creation of enough value (its supply model) and the extraction of a sufficient portion of that value (its revenue model). Innovative business models, for example fast-fashion (e.g., Zara), e-tailing (e.g., Amazon), and ride-sharing (e.g., Uber), are capable of offering new products and services that generate considerable consumer utility and transform industries. This paper develops a research framework for understanding business models and how business models have evolved over time. Links are made to the existing literature (primarily in pricing and operations) and simple models are developed to unify and clarify existing research findings. Through this framework it is possible (i) to identify the few design decisions that explain the success of these diverse firms with otherwise seemingly disparate models, and (ii) to speculate on potential future business model innovations.

Suggested Citation

Cachon, Gerard P, A Research Framework for Business Models: What Is Common Among Fast Fashion, E-Tailing, and Ride Sharing? (September 16, 2018). Available at SSRN: https://ssrn.com/abstract=3250441 or http://dx.doi.org/10.2139/ssrn.3250441

Gerard P Cachon (Contact Author)

The Wharton School - Operations, Information and Decisions Department ( email )

Philadelphia, PA 19104
United States

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