Exploring the Dynamics of Business Model Portfolio: Unveiling Strategic Restructuring: A Case Study of Sany Heavy Industry

In the dynamic business landscape, with rapidly changing technological and market demands, firms are compelled to operate multiple business models within a firm to maintain competitive advantage. Managing multiple business models adds significant complexity, necessitating an in-depth knowledge of business model dynamics and the proactive management of synergies for strategic adaptation due to inherent interdependencies. The advent of transformative technologies, such as electrification and automation, particularly in the equipment industry, introduces both novel opportunities and challenges, further complicating this landscape. Despite the widespread adoption of a portfolio of business models, a comprehensive understanding of their dynamics, especially among non-digital native firms, remains scarce. This research aims to bridge this knowledge gap by conducting a single case study that explores the rationales non-digital native firms in the construction equipment industry employ to restructure their business model portfolios for sustainability. Through a longitudinal qualitative analysis of a specific case, we have identified both intra- and inter-complementarities among customers and business models within the portfolio. Furthermore, we have highlighted strategic intents and the rationales behind each business model, offering insights into the complexities of managing business model portfolios in a dynamic industry context.