Business Model Evaluation: Quantifying Walmart's Sources of Advantage

We develop an analytical framework on the basis of the economics of business performance to provide quantitative insight into the link between a firm's business model choices and their profit consequences. The method is applied to Walmart by building a qualitative representation of its business...

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Bibliographic Details
Published in:	Strategic entrepreneurship journal 2015-03, Vol.9 (1), p.12-33
Main Authors:	Brea-Solís, Humberto, Casadesus-Masanell, Ramon, Grifell-Tatjé, Emili
Format:	Article
Language:	eng
Subjects:	Business & economic sciences Business model Business model evaluation Business models Business strategy Competitive advantage Discount department stores Effectiveness studies Mapping Productivity Retailing Sciences économiques & de gestion Strategy & innovation Stratégie & innovation Walmart
Online Access:	Get full text
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Summary:	We develop an analytical framework on the basis of the economics of business performance to provide quantitative insight into the link between a firm's business model choices and their profit consequences. The method is applied to Walmart by building a qualitative representation of its business model and mapping that representation on an analytical model that quantifies the company's sources of advantage over time. The analysis suggests that the effectiveness of a particular business model depends not only on its design (its levers and how they relate to one another) but, most importantly, on its implementation (how the levers are pulled). Copyright © 2014 Strategic Management Society.
ISSN:	1932-4391 1932-443X 1932-443X