Business Model Innovation: Elements in Business Strategy, Strategic and Organizational Issues for Established Firms

Digital technologies have allowed for the proliferation of new business models, something that has attracted the attention of academic research. Much of this research has focused on (i) understanding what a business model is and its theoretical connection to the concept of strategy, and (ii) exploring what business model innovation is and what its sources and outcomes are. Less work has gone into studying the issues that established firms face in business model innovation – such as how to respond to the arrival of a disruptive business model in one's industry, or how to compete with dual business models or how to migrate from one business model to another. This Element approaches the topic of business model innovation from the perspective of the established firm and examines the unique strategic and organizational issues that big, established companies face when a new business model enters their markets.

About the Author

Constantinos C. Markides is recognized as one of the world's foremost experts on strategy and innovation, based in London, UK. He is Professor of Strategy and Entrepreneurship and holds the Robert P Bauman Chair in Strategic Leadership at London Business School. An internationally acclaimed teacher and conference speaker, he is the author of seven books and has published articles in top journals such as the Strategic Management Journal, Harvard Business Review and MIT Sloan Management Review. He is currently the Program Director of his school's executive education course, entitled: "Exploiting Disruption in a Digital World."