ABBA Eminem ABBA Ray Charles A*Teens Dr. Dre Black Sabbath Nas Nelly Usher Elvis Presley Sven & Andy Christopher Rosenqvist Tutor Kreidenweiss Andreas Ahrens Sven Authors Sweden. industry, business model,modelinnovation, industrytransformation,music Keywords beta licenses,anticipativesolution,emancipated consumersandfast-adoptingconsumers. were factors success key seven areas, four these Within offering. market the and consumers model innovation was spurred There through is evidence a that technology positive built the base interplay for Sweden’s of success and network that business architecture, conducted. with variousindustryexpertswere transformation successful Sweden’s show to designed was study case qualitative A literature. an analysis framework to derive key success factors will be developed to close the gap in business model innovation, with a focus on Thus, the purpose the of this Swedish study is to music investigate how industry. industries can Furthermore, undergo a successful model innovationonanindustrylevel. are changing at a faster pace than ever and hence industries entire there technologies, new is of rise the a to Due abstract. need rather is theory to of application understand business Abstract The CaseoftheSwedishMusicIndustry Louis Armstrong Louis Armstrong Louis Fall 2012 Department ofMarketing&Strategy Master Thesis Stockholm SchoolofEconomics Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica Metallica ABBA Dr.Dre Dr.Dre Dr.Dre Dr.Dre Dr.Dre Markus Krunegård Markus Krunegård Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Dead by April Dead by April Dead by April Dead by April Dead by April Dead by Eminem Lady Gaga Lady Gaga Lady Gaga Lady Gaga Black Eyed Peas Black Eyed Peas Bon Jovi Bon Jovi Hives Hives Europe Europe Europe Europe Europe Europe Europe Europe Rammstein Rammstein Veronica Maggio Veronica Maggio Black Sabbath Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica Metallica Metallica Metallica Metallica ABBA Bon Jovi Bon Jovi Hives Hives Europe Europe Europe Europe Europe Europe Europe Europe Rammstein Rammstein Veronica Maggio Veronica Maggio Black Sabbath Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica Metallica ABBA Dr.Dre Dr.Dre Dr.Dre Dr.Dre Dr.Dre Markus Krunegård Markus Krunegård Texas Texas Texas Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Dead by April Dead by April Eminem Lady Gaga Lady Gaga Lady Gaga Lady Gaga Black Eyed Peas Black Eyed Peas Bon Jovi Bon Jovi Black Sabbath Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica Metallica Liubov Smirnova Discussant Bertil Thorngren Examiner ABBA Dr.Dre Dr.Dre Dr.Dre Dr.Dre Dr.Dre Markus Krunegård Markus Krunegård Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Anna Ternheim Dead by April Dead by April Dead by April Dead by April Dead by April Dead by April Eminem Lady Gaga Lady Gaga Lady Gaga Lady Gaga Black Eyed Peas Black Eyed Peas Bon Jovi Bon Jovi Hives Hives Europe Europe Europe Europe Europe Europe Europe Europe Rammstein Rammstein Veronica Maggio Veronica Maggio Black Sabbath Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica a Metallica Metallica Metallica Metallica ABBA ABBA ABBA ABBA ABBA ABBA ABBA Bon Jovi Bon Jovi Hives Hives Europe Europe Europe Europe Europe Europe Europe Rammstein Rammstein Veronica Maggio Veronica Maggio Black Sabbath Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Louis Armstrong Metallica Metallica Metallica Metallica Metallica Metallica Metallica ABBA Dr.Dre Dr.Dre Dr.Dre Dr.Dre Dr.Dre Markus Krunegård Markus Krunegård Texas Texas Texas Anna T Anna DOA Eminem Lady Gaga Black Eyed Peas Bon Jovi Black Sabbath ABBA Dr.Dre Andy & Sven ACKNOWLEDGEMENTS We would like to thank Mattias Tengblad for providing guidance and unique insights into the music industry, Christopher Rosenqvist for being our tutor and inspiring us throughout the year, Robin Hjelte, Niklas Twetman, Gus Seyffert, Michelle Kadir, Samuel Arvidsson, Scott Farrant, Ludvig Werner, Helen McLaughlin, Leon Hill, Francis Keeling, Fredrik Nyström, Martin Elford, Mia Forsgren, Hans Kjellberg and Per Sundin, for taking time and helping us to conduct our study, and everyone else who supported us on our journey. Thank you so much! Sven Ahrens & Andreas Kreidenweiss Ahrens & Kreidenweiss – Industry-Wide Business Model Innovation TABLE OF CONTENTS 1 INTRODUCTION ........................................................................................................... 1 1.1 Case Background ................................................................................................................... 1 1.2 Research Background ........................................................................................................... 5 1.3 Problem Area and Purpose .................................................................................................. 5 1.4 Contributions to the Marketing World ............................................................................. 6 1.5 Delimitations ......................................................................................................................... 6 1.6 Thesis Outline ....................................................................................................................... 7 2 LITERATURE REVIEW .................................................................................................. 8 2.1 Relevance of Business Model (Innovation) ..................................................................... 8 2.2 Business Models .................................................................................................................... 9 2.2.1 Emergence of the Business Model Concept ................................................................. 9 2.2.2 What is a Business Model ............................................................................................. 11 2.2.3 Business Model Definition Used for this Thesis ....................................................... 13 2.3 Business Model Innovation .............................................................................................. 14 2.3.1 Emergence of the Business Model Innovation Concept .......................................... 14 2.3.2 What is Business Model Innovation ........................................................................... 15 2.3.3 When to Innovate the Business Model ....................................................................... 16 2.3.4 How to Innovate the Business Model ......................................................................... 17 2.4 Firm-Focus vs. Industry-Focus .......................................................................................... 18 2.4.1 Firm-Focus of Business Models ................................................................................... 18 2.4.2 Firm-Focus of Business Model Innovation ................................................................ 18 2.4.3 Exceptions among Literature ....................................................................................... 19 2.5 Problem Definition and Research Questions ................................................................ 20 2.5.1 Problem Definition ........................................................................................................ 20 2.5.2 Research Questions ....................................................................................................... 21 3 METHODOLOGY ......................................................................................................... 23 3.1 Research Strategy ................................................................................................................ 23 3.2 Research Design .................................................................................................................. 24 3.2.1 Unit of Analysis: Case Study ....................................................................................... 24 3.2.2 Case Study Selection ..................................................................................................... 25 3.2.3 Case Study Coding and Analysis Framework .......................................................... 26 3.3 Data Collection .................................................................................................................... 27 3.3.1 In-Depth Interviews ...................................................................................................... 27 3.3.2 Secondary Data .............................................................................................................. 29 3.4 Limitations ........................................................................................................................... 30 3.4.1 Methodological Limitations ......................................................................................... 30 3.4.2 Research Quality ...........................................................................................................