A Business Model Perspective to Retail Transformation

Retail connects production and consumption in ways that enable consumers to attain value. Current developments in the field indicate that the retail industry is reaching an evolutionary phase. The emergence of new forms of commerce, such as platform businesses have diversified retail operations. Consequently, the traditional retail characteristics are being challenged, which may have major implications for the retail industry as a whole. Therefore, understanding how value is created in retailing is still important. Since this phenomenon has remained underexplored, the purpose of this article-based dissertation is to explore and analyze retail transformation from a business model perspective.

This dissertation consists of an introductory section and four articles. Article I explores business models in a changing traditional retail environment from the viewpoint of retail managers. Article II analyzes how differentiation is conducted in platform business using a value proposition. Article III explores and analyzes how activity systems are designed when value creation occurs in networks. Finally, Article IV develops a typology that characterizes various business models that are emerging in retail markets.

Based on these four articles and the compilation part, three propositions are formulated to understand retail transformation and suggest how retail firms could navigate in it. Further, several managerial implications are discussed, and future research avenues are identified.