Abstract
Success in a business depends on different factors. One of these factors is design and implementation of a unique business model. This model is representation of a pattern commercializing innovations and ideas. Indeed, this model illustrates the profitability boundaries caused by innovations. Hence, this study was conducted to recognize the business model types used by Tehran's Tourism agencies. The main question of the study is what kinds of business model are used by Tehran's tourism agencies? The utilized framework to analysis the business models, in this study, comprises four dimensions service, target market, infrastructure management, and financial aspects. This study was conducted in Tehran's tourism agencies in 2014 (n=110). A questionnaire was administered for data collection. Hierarchical clustering using SPSS 19.0 used to analyses data and acquires the main purpose of the study. Findings revealed that Tehran’s tourism agencies, mainly, use three kinds of business model which are Financial Model Based Business Model, Customer Based Business Model, and Service Based Business Model. It was also illustrated that most of Tehran's tourism agencies were utilizing Service Based Business Model.
Highlights
Business model is almost a new concept which has been widespread in management and organization literature since 1990s (Lambert & Davidson, 2012)
Thirty percent of the participants had less than five years of experience in managing a tourism agency; only 7% of them had more than 20 years of experience
Thirty-one percent of the tourism agencies had been in business less than five years, while only 3% of them had been in business more than 20 years
Summary
Business model is almost a new concept which has been widespread in management and organization literature since 1990s (Lambert & Davidson, 2012). There is not a consensus on what is a business model due to the dynamic nature of this concept, all of the authors have related this concept to the creation and deliver of value by a business. (2008) consider business model as a four-dimension model in which the collaboration among these four dimensions create and deliver value. These dimensions are 1) consumer's value proposition 2) profit formula 3) key sources and 4) key activities (Johnson et al, 2008). The Awareness about this concept makes able managers to consciously choose their business model based on their strength and weakness and the environmental opportunities and threats. Identification of the current situation is the first step on the choice of strategic decisions related to business model
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