Innovations in retail business models

A. Sorescu, R.T. Frambach, J. Singh, A. Rangaswamy, C. Bridges

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations, and intense competition. Drawing from extant strategy and retailing research, we propose that innovations in retail business models are best viewed as changes in three design components: (1) the way in which the activities are organized, (2) the type of activities that are executed, and (3) the level of participation of the actors engaged in performing those activities. We propose six major ways in which retailers could innovate their business models to enhance value creation and appropriation beyond the levels afforded by traditional approaches to retailing. We also describe the drivers of business model innovations, the potential consequences of such innovations, and numerous examples from retail practice that highlight our concepts and arguments. In doing so, we provide a starting point for academic research in a domain that is deficient in theoretical and empirical research, and offer retailing managers a framework to guide retail business model innovations for sustainable competitive advantage. © 2011 New York University.
Original languageEnglish
Pages (from-to)S3-S16
JournalJournal of Retailing
Volume87
Issue number1
DOIs
Publication statusPublished - 2011

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Retail
Business model
Innovation
Retailing
Business model innovation
Retailers
Empirical research
Customer expectations
Participation
Academic research
Sustainable competitive advantage
Value creation
Value appropriation
Managers

Cite this

Sorescu, A., Frambach, R. T., Singh, J., Rangaswamy, A., & Bridges, C. (2011). Innovations in retail business models. Journal of Retailing, 87(1), S3-S16. https://doi.org/10.1016/j.jretai.2011.04.005
Sorescu, A. ; Frambach, R.T. ; Singh, J. ; Rangaswamy, A. ; Bridges, C. / Innovations in retail business models. In: Journal of Retailing. 2011 ; Vol. 87, No. 1. pp. S3-S16.
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Sorescu, A, Frambach, RT, Singh, J, Rangaswamy, A & Bridges, C 2011, 'Innovations in retail business models' Journal of Retailing, vol. 87, no. 1, pp. S3-S16. https://doi.org/10.1016/j.jretai.2011.04.005

Innovations in retail business models. / Sorescu, A.; Frambach, R.T.; Singh, J.; Rangaswamy, A.; Bridges, C.

In: Journal of Retailing, Vol. 87, No. 1, 2011, p. S3-S16.

Research output: Contribution to JournalArticleAcademicpeer-review

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