Business Model Portfolios: Survival in the Corporate Strategy Shark T...

This abstract shows the preliminary results of a comparative static analysis of the evolution and longevity of business models (BMs) in a business model portfolio (BMP). BMs are interrelated by similarity or complementarity (synergistic combinations), conflicts (value destroying combinations) or compatibility (no combinations). Combinations occur between resources and activities (competencies), but also between customer value propositions and profit formulae. We find the more synergistic combinations between a new and an existing BMP, the greater the new BM’s longevity. Similarly, conflicting combinations between a new and an existing BM decrease BM longevity. Distance to the core components moderates this relationship. Therefore, BM longevity increases with the number of synergistic combinations to core components of the BMP. Conversely BM longevity decreases with the number of conflicting combinations to core components of the BMP.