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Kai-Ingo Voigt Oana Buliga Kathrin Michl Management for Professionals Kai-Ingo Voigt Oana Buliga Kathrin Michl Business Model Pioneers How Innovators Successfully Implement New Business Models Management for Professionals More information about this series at http://www.springer.com/series/10101 Kai-Ingo Voigt • Oana Buliga • Kathrin Michl Business Model Pioneers How Innovators Successfully Implement New Business Models Kai-Ingo Voigt Oana Buliga Chair of Industrial Management Chair of Industrial Management Friedrich-Alexander University Friedrich-Alexander University Erlangen-Nurnberg€ Erlangen-Nurnberg€ Nurnberg,€ Germany Nurnberg,€ Germany Kathrin Michl Chair of Industrial Management Friedrich-Alexander University Erlangen-Nurnberg€ Nurnberg,€ Germany ISSN 2192-8096 ISSN 2192-810X (electronic) Management for Professionals ISBN 978-3-319-38844-1 ISBN 978-3-319-38845-8 (eBook) DOI 10.1007/978-3-319-38845-8 Library of Congress Control Number: 2016943646 # Springer International Publishing Switzerland 2017 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG Switzerland Acknowledgements The idea for this publication stems from a research seminar offered by Professor Voigt to students on a Master’s level at the Friedrich-Alexander University of Erlangen-Nurnberg,€ which took place during the winter term 2014/2015. The research seminar provided a fruitful ground for discussion and debate on topics ranging from the selection of the case studies, to competitor and industry analyses, up to future perspectives for the chosen business model pioneer examples. The completion of the seminar simultaneously marked the beginning of the journey towards this book. For their active role in helping to co-create the seminar content and for the fruitful discussion rounds, we would like to thank the participating students, Anton Abragimovic, Nadine Barthold, Johanna Klier, Michael Konter, Nina Lang, Kristina Meier, Bettina Muller,€ Maximilian Pfister, Linda Schmich, Sandra Schork, Sebastian Schrodel,€ Visar Smajli, Sebastian Suchanek and Christian Vogler. v ThiS is a FM Blank Page Contents Part I Retail Business Model Pioneers 1 Introduction .......................................... 3 Reference . ........................................... 6 2 The Business Model Concept ............................. 7 References ............................................ 10 3 Striving for Customer Benefit: The Case of Aldi ............... 11 3.1 Founders . ...................................... 12 3.2 Market Demand . 13 3.3 Pioneer Business Model . ....................... 13 3.4 Current Business Model . ....................... 15 3.5 Industry Outline and Future Perspectives . 20 References ............................................ 21 4 Pure Beauty: The Case of The Body Shop ................... 25 4.1 Founder ......................................... 27 4.2 Market Demand . 27 4.3 Pioneer Business Model . ....................... 28 4.4 Current Business Model . ....................... 31 4.5 Industry Outline and Future Perspectives . 35 References ............................................ 36 5 Globalizing Coffee Culture: The Case of Starbucks ............ 41 5.1 Founders . ...................................... 42 5.2 Market Demand . 42 5.3 Pioneer Business Model . ....................... 43 5.4 Current Business Model . ....................... 45 5.5 Industry Outline and Future Perspectives . 49 References ............................................ 50 6 Customized and Built to Order: The Case of Dell .............. 55 6.1 Founder ......................................... 56 6.2 Market Demand . 57 6.3 Pioneer Business Model . ....................... 57 vii viii Contents 6.4 Current Business Model . ....................... 60 6.5 Industry Outline and Future Perspectives . 63 References ............................................ 64 7 Creating the Global Shopping Mall: The Case of Amazon ....... 67 7.1 Founders . ...................................... 68 7.2 Market Demand . 68 7.3 Pioneer Business Model . ....................... 69 7.4 Current Business Model . ....................... 71 7.5 Industry Outline and Future Perspectives . 75 References ............................................ 75 Part II Media and Entertainment Business Model Pioneers 8 Beyond the Search Engine: The Case of Google ............... 81 8.1 Founders . ...................................... 82 8.2 Market Demand . 82 8.3 Pioneer Business Model . ....................... 83 8.4 Current Business Model . ....................... 86 8.5 Industry Outline and Future Perspectives . 90 References ............................................ 91 9 Journalism 2.0: The Case of the Huffington Post .............. 95 9.1 Founders . ...................................... 97 9.2 Market Demand . 97 9.3 Pioneer Business Model . ....................... 98 9.4 Current Business Model . ....................... 100 9.5 Industry Outline and Future Perspectives . 102 References ............................................ 105 10 Making People Happy: The Case of the Walt Disney Company ... 113 10.1 Founders . ............................... 115 10.2 Market Demand . 116 10.3 Pioneer Business Model . ................. 117 10.4 Current Business Model . ................. 119 10.5 Industry Outline and Future Perspectives . 123 References ............................................ 124 11 Entertainment on Demand: The Case of Netflix ............... 127 11.1 Founders . ............................... 128 11.2 Market Demand . 129 11.3 Pioneer Business Model . ................. 130 11.4 Current Business Model . ................. 132 11.5 Industry Outline and Future Perspectives . 137 References ............................................ 138 Contents ix 12 Passion for Music: The Case of Spotify ...................... 143 12.1 Founders . ............................... 144 12.2 Market Demand . 144 12.3 Pioneer Business Model . ................. 145 12.4 Current Business Model . ................. 147 12.5 Industry Outline and Future Perspectives . 151 References ............................................ 153 Part III Service Business Model Pioneers 13 Democracy in Education: The Case of edX ................... 159 13.1 Founders . ............................... 160 13.2 Market Demand . 161 13.3 Pioneer Business Model . ................. 161 13.4 Current Business Model . ................. 163 13.5 Industry Outline and Future Perspectives . 167 References ............................................ 167 14 Pioneer in the Skies: The Case of Southwest Airlines ........... 171 14.1 Founders . ............................... 172 14.2 Market Demand . 173 14.3 Pioneer Business Model . ................. 174 14.4 Industry Outline and Future Perspectives . 180 References ............................................ 181 Part IV Manufacturing Business Model Pioneers 15 Driving Against the Tide: The Case of Tesla Motors ........... 187 15.1 Founders . ............................... 188 15.2 Market Demand . 188 15.3 Pioneer Business Model . ................. 189 15.4 Current Business Model . ................. 191 15.5 Industry Outline and Future Perspectives . 195 References ............................................ 196 16 Managing Complexity: The Case of Siemens ................. 199 16.1 Founders . ............................... 200 16.2 Market Demand . 201 16.3 Pioneer Business Model . ................. 201 16.4 Current Business Model . ................. 203 16.5 Industry Outline and Future Perspectives . 207 References ............................................ 208 17 Key Learnings: How to Start a Pioneering Business Model? ..... 213 Part I Retail Business Model Pioneers Introduction 1 The Oxford Learner’s Dictionary refers to a pioneer as a person, who is among the first to pursue a new field of activities or undertakings. A pioneer is someone, who creates and develops new ideas, approaches and methods. The term “pioneer” has been used to describe fields of human interest and activity as diverse as scientific breakthroughs (innovator, trailblazer, developer), geographical discoveries (explorer, settler, colonist), alongside with cultural and philosophical advances (avant-garde artist, founding father of a school of thought). This is to give a very brief listing of the areas, in which the pioneering spirit comes forward. Without this particular condition of the human spirit, and without pioneers
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