Case Study On Business Model Innovation Of Decoration Enterprises

Business model is a concept originated in the 1950’s,but until today, in the wave of innovation and entrepreneurship,which is still mentioned as a high-frequency word and still be treated as a core concept by scholars.Therefore, as time goes on, the business model is changing,the study with innovation of business model is also developing, which is combined with the reality situations. So,research on business model and its innovation has great practical significance in the age of ‘Internet +’.Firstly,based on the previous scholars’ theoretical, this paper selects the perspective of the value chain to do the study about the innovation of business model.By defining the meaning and classification of the innovation of business model,this paper explains the relationship between the innovation of business model and the value chain’s reconsitution,then classify it into certain types,such as extended value chain,splitted value chain and value innovated chain,etc.,which provides the theoretical support to the following paragraphs. Secondly, the cases of this paper come from the decoration industry for two reasons, on the one hand, this industry has a ‘super chain’ whose value chain is long and typical,on the other hand,in recent years,there were many new internet companies established which is promoting the innovation and reform of decoration industry.Therefore,Qijia.com and home-decoration e-station were selected as the representative firms.The research framework is divided into three parts,the first part is to explore why the value chain reconstructs,and what factor leads to the value chain’s reconstruction.The second part explores how to reconstruct the value chain based on the perspective of the whole and the parts, explores whether the innovative behavior of different main modules of the value chain is consistent with the overall reconstruction mode.The last part explores how the value chain’s reconstruction leads to the innovation of business model,and whether there is a corresponding relationship between the main modules of the value chain and the elements of business model.By analysing the progress of innovation and the reconstruction of the value chain of each company,the following results were found:(1) value proposition is the motivation of the reconstruction of value chain;(2) the innovation of each part of value chain agrees with the whole value chain’s reconstruction style;(3) the innovation behaviours of the each part of value chain have corresponding relations with the elements’ innovation of business model.These conclusions have the applicability,but also have considerable limitations, some of the conclusions still need further study like quantitative research to confirm its rationality.