Purpose – This article aims to examine the concept of business model innovation and to discuss the design of the key elements. Based on a detailed case study of Nespresso, it seeks to outline how business model innovation can be implemented successfully. Design/methodology/approach – Based on a theoretical conceptualization of a business model, the authors conduct an in‐depth case study to draw conclusions for a successful implementation of a business model innovation. Findings – A business model innovation comprises five components: an innovative, unique positioning, a consistent product and service logic, an appropriate value creation architecture, an effective sales and marketing logic and a profit formula that works. Success is based upon a unique, innovative and coherent design of the business model's components. Originality/value – Based on Nespresso's business model, this paper illustrates what a business model innovation is, what its components are and how they should be designed to create and capture value.
Journal of Business Strategy – Emerald Publishing
Published: Mar 29, 2013
Keywords: Value creation; Value capture; Business model innovation; Case studies; Components of a business model; Value analysis; Innovation; Corporate strategy
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