Business model innovation and competitive imitation
Subtitle: the case of sponsor-based business models
By: Ramon Casadesus-Masanell, Feng Zhu
Contributors: Zhu, Feng; Harvard Business School
Edition: Rev.
Series: Working paper / Harvard Business School -- 11-003; Working paper (Harvard Business School) -- 11-003
Publisher: Harvard Business School
Published: 2011
Place of publication: Boston]
Language: eng
Number of pages: 36
Description: We study sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. We find that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist.
Notes: "July 2010, revised September 2011" -- Publisher's website.

"September 1, 2011" -- added t.p.

Previously published as: Business model innovation and competitive imitation.

Includes bibliographical references.