Abstract
The importance of business model has already been identified. However, the understanding of business model in academic area is stilly overlooked. This study clarifies the definition and business model at the macroscope level with the “role + purpose” regulation, and points out four elements of business model at microscope level. The real-life case in term of the Apple Company’s “hardware + software + service” business model demonstrate the four elements of a successful business model to obtain sustainable performance for firms. Keywords: Business model, literature review, macroscopic/microscopic perspective, Apple inc, DOI : 10.7176/EJBM/11-32-03 Publication date: November 30 th 2019
Highlights
Nowadays, the competitions among firms are not concerning their products, but their business model (Drucker 1994)
Firms can create much more value via a great business model within a mediocre technology than a great technology exploited with a mediocre business model (Chesbrough 2010)
Became a new and independent research field that emerged at the 1990s based on the popularization of the Internet
Summary
The competitions among firms are not concerning their products, but their business model (Drucker 1994). The word business has been interpreted as “the activity of making money by producing or buying and selling goods, or providing services”, and the word model as “a representation that shows how the system or process works, and what it looks like”. The definitions of business model in the macroscopic perspective are abided by this “role + purpose” regulation. For the purpose of business model, theirs are much more unified, that is, create, deliver and capture value (Baden-Fuller and Morgan 2010, Teece 2010, Gambardella and McGahan 2010, Amit and Zott 2001), and generate revenue (Gambardella and McGahan 2010, Chesbrough and Rosenbloom 2002). A system of interdependent Transcends the focal firm and spans its activities boundaries (Teece 2010)
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