Abstract

The changes in the business environment influenced by the growth of the global information system and technology development does not exclude changes mandated in book retail and publishing industry business model. Research on business model innovation emerge since the 2000s, but the research that analyzes its relation to how value chain and strategy may utilize one firm's competitive advantage is rare. Hence, this research fulfills the knowledge gaps, uses PT. Gramedia Digital Nusantara as a case study to analyze its business model and value chain. This research adopted the Osterwalder business model canvas, Porter's value chain model, and Porter's Generic Strategy to categorize the firm's competitive advantage improvement. Data collection research was conducted by converges in-depth interviews, data analysis for quantitative support, and observation results to answer the lack of in the firm's document. Then, the data were processed by using conventional qualitative data analysis techniques, open and axial coding. From the research, it can be concluded that the firm's competitive advantage is concerned about the efficiency resulted from internal key partners' collaboration, the utilization of advanced technology in marketing and production activities. Also, strengthen the customer segments with the firm through customer relationships supported by technology operations and research and insights activities.

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