Skip to main content
SpringerLink
Log in
Book cover

Media and Convergence Management pp 9–23Cite as

Business Modelling and Convergence

  • Chapter
  • First Online:

Abstract

This chapter discusses the interrelationship between the concepts of convergence and business model. Examples of product, industry and content convergence are provided and definitions are discussed; the chapter also elaborates upon the similarities and differences between convergence and previously existing business phenomena. Further, the concept of business model is introduced and defined; the current state of business model as a field of research is presented and discussed. Finally, the chapter evaluates the fit between business models and different types of convergence.

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed. Henry Ford

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   74.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   99.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Afuah, A. (2004). Business models: A strategic management approach. New York, NY: Irwin/McGraw-Hill.

    Google Scholar 

  • Afuah, A., & Tucci, C. L. (2001). Internet business models and strategies: Text and cases. New York, NY: McGraw-Hill.

    Google Scholar 

  • Alt, R., & Zimmerman, H. D. (2001). Introduction to special section on business models. Electronic Marketing, 11(1), 3–9.

    Google Scholar 

  • Amit, R., & Zott, C. (2001). Value creation in e-business. Strategic Management Journal, 22, 493–520.

    Article  Google Scholar 

  • Applegate, L. M. (2000). E-business models: Making sense of the internet business landscape. In G. Dickson & G. DeSanctis (Eds.), Information technology and the future enterprise: New models for managers (pp. 49–101). Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18, 105–123.

    Article  Google Scholar 

  • Bakos, Y., & Brynjolfsson, E. (1999). Bundling information goods: Pricing, profits, and efficiency. Management Science, 45(12), 1613–1630.

    Article  Google Scholar 

  • Bakos, Y., & Brynjolfsson, E. (2000). Bundling and Competition on the Internet. Marketing Science, 19(1), 63–82.

    Article  Google Scholar 

  • Barney, J., Wright, M., & Ketchen, D. (2001). The resource-based view of the firm: Ten years after. Journal of Management, 27(6), 625–641.

    Article  Google Scholar 

  • Bröring, S., Cloutier, L. M., & Leker, J. (2006). The front end of innovation in an era of industry convergence: Evidence from neutraceuticals and functional foods. R&D Management, 36(5), 487–498.

    Article  Google Scholar 

  • Brousseau, E., & Penard, T. (2006). The economics of digital business models: A framework for analysing the economics of platforms. Review of Network Economics, 6(2), 81–110.

    Google Scholar 

  • Brush, C. G., Greene, P. G., Hart, M. M., & Holler, H. S. (2001). From initial idea to unique advantage: The entrepreneurial challenge of constructing a resource base. The Academy of Management Executive, 15(1), 64–80.

    Article  Google Scholar 

  • Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43, 354–363.

    Article  Google Scholar 

  • Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529.

    Article  Google Scholar 

  • Choi, D. Y., & Perez, A. (2007). Online piracy, innovation and legitimate business models. Technovation, 27, 168–178.

    Article  Google Scholar 

  • Chon, B. S., Choi, J. H., Barnett, G. A., Danowski, J. A., & Joo, S.-H. (2003). A structural analysis of media convergence: Cross-industry mergers and acquisitions in the information industries. Journal of Media Economics, 16(3), 141–157.

    Article  Google Scholar 

  • Donath, R. (1999). Taming e-business models. ISBM business marketing web consortium 3(1) (pp. 1–24). State College, PA: Institute for the Study of Business Markets.

    Google Scholar 

  • Dubosson-Torbay, M., Osterwalder, A., & Pigneur, Y. (2002). E-business model design, classification and measurements. Thunderbird International Business Review, 44(1), 5–23.

    Article  Google Scholar 

  • Ford, H. http://quotationsbook.com/quote/16900/. Retrieved 31 Mar 2012.

  • George, G., & Bock, A. (2011). The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35, 83–111.

    Article  Google Scholar 

  • Han, J. K., Chung, S. W., & Sohn, Y. S. (2009). Technology convergence: When do consumers prefer converged products to dedicated products? Journal of Marketing, 73(July), 97–108.

    Article  Google Scholar 

  • Horowitz, A. S. (1996). The real value of VARS: resellers lead a movement to a new service and support. Marketing Computers, 16(4), 31–36.

    Google Scholar 

  • Jarillo, J. C. (1995). Strategic networks. Oxford: Butterworth-Heinemann.

    Google Scholar 

  • Kastner, J. (2009). Chinese Nutrition Therapy: Dietetics in Traditional Chinese Medicine. Stuttgart: George Thieme Verlag.

    Google Scholar 

  • King, B. (2008). Agriculture and automobiles. http://whiskeyandgunpowder.com/agriculture-and-automobiles/. Accessed 29 Mar 2012.

  • Lechner, C. (2003). Unternehmensnetzwerke: Wachstumsfaktor für Gründer. In Michael Dowling and Hans Jürgen Drumm (Hrgb) Gründungsmanagement. Springer: Berlin.

    Google Scholar 

  • Linder, J. C., & Cantrell, S. (2001). Changing business models. Chicago, IL: Institute for Strategic Change, Accenture.

    Google Scholar 

  • Markides, C. (1999). A dynamic view of strategy. Sloan Management Review, 40(3), 55–63.

    Google Scholar 

  • Morris, M., Schindenhutte, M., & Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58, 726–735.

    Article  Google Scholar 

  • Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, 87, 57–64.

    Google Scholar 

  • Osterwalder, A. (2004). The business model ontology – A proposition in a design science approach. Dissertation 173, University of Lausanne, Switzerland.

    Google Scholar 

  • Porter, M. E. (1985). Competitive Advantage. New York, NY: Free Press.

    Google Scholar 

  • Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6), 61–78.

    Google Scholar 

  • Prahalad, C. K. (1998). Managing discontinuities: The emerging challenges. Research Technology Management, 3, 14–22.

    Google Scholar 

  • Sahlman, W. A. (1997). How to write a great business plan. Harvard Business Review, 75, 98–108.

    Google Scholar 

  • Schwarz, E. J., Dummer, R., & Krajger, I. (2007). Von der Geschäftsidee zum Markterfolg. Wien: Linde International.

    Google Scholar 

  • Seelos, C., & Mair, R. (2007). Profitable business models and market creation in the context of deep poverty: A strategic view. Academy of Management Perspective, 21, 49–63.

    Article  Google Scholar 

  • Shafer, S. M., Smith, H. J., & Linder, J. (2005). The power of business models. Business Horizons, 48, 199–207.

    Article  Google Scholar 

  • Shane, S., & Delmar, F. (2004). Planning for the market: Business planning before marketing and the continuation of organizing efforts. Journal of Business Venturing, 19, 767–785.

    Article  Google Scholar 

  • Steward, D. W., & Zhao, Q. (2000). Internet marketing, business models and public policy. Journal of Public Policy and Marketing, 19, 287–296.

    Article  Google Scholar 

  • The Economist. News of the World, 17 Mar 2012.

    Google Scholar 

  • Timmers, P. (1998). Business models for electronic markets. Electronic Markets, 8(2), 3–8.

    Article  Google Scholar 

  • Weill, P., & Vitale, M. R. (2001). Place to spare: Migrating to e-business models. Boston: Harvard Business School Press.

    Google Scholar 

  • Wirtz, B. W. (2001). Reconfiguration of value chains in converging media and communication markets. Long Range Planning, 34, 489–506.

    Article  Google Scholar 

  • Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37(4), 1019–1042.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Alpen-Adria University of Klagenfurt, Universitätsstraße 65-67, Klagenfurt, 9020, Austria

    Veronika Gustafsson & Erich J. Schwarz

Authors
  1. Veronika Gustafsson
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Erich J. Schwarz
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding authors

Correspondence to Veronika Gustafsson or Erich J. Schwarz .

Editor information

Editors and Affiliations

  1. Institut für Kommunikationswirtschaft, Alpen-Adria Universität Klagenfurt, Universitätsstraße 65-67, Klagenfurt, 9020, Austria

    Sandra Diehl

  2. Institut für Kommunikationswirtschaft, Alpen-Adria-Universität Klagenfurt, Universitätsstraße 65-67, Klagenfurt, 9020, Austria

    Matthias Karmasin

Appendices

Self-assessment Questions

  1. 1.

    What is a smartphone described in the Introduction section: a bundle of products or a convergence device?

  2. 2.

    Please provide own example(s) of functional foods and cosmeceuticals.

  3. 3.

    What makes 3D printing an ultimate convergence example?

  4. 4.

    Are convergence products manufacturer-centric or customer-centric?

  5. 5.

    What is the relationship (if any) between a business model and the revenue mechanism by which a company is paid for its offering?

  6. 6.

    Why are there so many different definitions of a business model concept?

  7. 7.

    What does efficiency mean in Amit and Zott’s (2001) model?

  8. 8.

    Would you see lock-in as an appropriate source of revenue for a convergence company? Why/why not?

  9. 9.

    How can legitimate firms learn from online pirates?

Food for Thought

  1. 1.

    How do you interpret Henry Ford’s words in the beginning of this chapter?

  2. 2.

    Why do some practitioners believe that technological innovation is no longer the core of innovative business models? In which industry (or industries) is this situation possible? Does his reasoning hold for a high-tech company in a convergence industry?

  3. 3.

    Why does Apple hold 5 % of the world’s PC market and 70 % of the digital music player market?

  4. 4.

    Does Spotify have a future? Can you foresee potential development of its business model?

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Gustafsson, V., Schwarz, E.J. (2013). Business Modelling and Convergence. In: Diehl, S., Karmasin, M. (eds) Media and Convergence Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36163-0_2

Download citation

Publish with us

Policies and ethics

Search

Navigation