Business model and business model sophistication: a case study in a SME

Abstract

Purpose: The main objective of this study is to analyse which aspects of the business model theory are being applied within the firm, in which extent the innovation assures sustainability, and whether it is possible to create complementary opportunities to its main activity. We also explain how these factors can allow the firm achieves benefits derived from the efficient design and application of an unbreakable business model and a sophisticated strategy. Design/Methodology: To reach these objectives, we made a research of the theoretical background that was tested out then in a Peruvian small-medium-sized company oriented to medical equipment sale: Global Business Healthcare SAC. For this, we carried out interviews for managers, use non-confidential firm's information, and search on internet all information about the business sector. Findings: The results show that a SME that develops a Business Model and frequently innovate it, is more capable to identify and organise its key resources and capabilities, and therefore to improve its performance and get sustainable benefits. Also, it is noted that the firm has a potential to create a second-value through a sophistication strategy that identifies a profitable complementary activity. Innovation, sustainability, secondvalue creation are key elements that support an unbreakable business model.