The Innovation Of The Components Of The Business Model Portfolio Of Department Stoers: A Grounded Theory Approach

The business model has applied by various industries rather than by e-commerce business at the initial stage. As for the retailing industry, it generally employed the business model as a typical case to study. However, the relatively lack of concrete theory for business model of the retailing industry, especially department store is existing. Recent years, department stores have experienced comparatively rapid development after transition and appeared relatively strong competitive advantage. As a consequence, to face and overcome the futhure pressure from internet retailing and foreign department stores, it is meaningful to analyse the current evolutiona and innovation of the department store from the perspective of the business model, and to research the elements and porfolio of the business model of the department store. In order to explore the main elements of the business model, this paper attempts to implement Grounded Theory to analyze Wangfujing and Sears, two typical department stores, on the basis of historic data. Additionally, by comparing and contrasting these elements of different periods, the present study aims to summarize the evolvement process of the combinations of their business models' elements during their development procedures. Meanwhile, according to the results, this thesis tends to abstract the elements (strategies, corporate culture, insight, entrepreneurship spirit, the capability of innovation, product/the range of market, strategic assets, marketing means, supply network as well as dynamic link) of the business model portfolio model of department stores, the chart of the business model and all kinds of evaluation criteria for these elements. Based on the model and criteria, it is helpful for department stores to find the weaknesses of their current model, and to direct the direction and path of future innovation of the business model's elements.