EFFECT OF ADDING NEW PRODUCTS ON A COMPANY’S BUSINESS MODEL: A CASE STUDY IN INDONESIA

Abstract

Business model is a basic description of how an organisation creates, delivers, and captures existing values. It likes a blueprint of strategies that will be implemented to an organisation, including processes and systems. This study explained the effect of adding new products on the changes in the business model of the company ‘XYZ’, which started its operations in financing durable goods by setting its sales targets based on the previous historical performance data and using the existing business model without making any changes. This study was aimed at mapping the business model of durable goods that was implemented by XYZ using the business model canvas, and at formulating improvements of the business model canvas. The research was conducted by carrying out literature reviews, in-depth interviews, focus group discussions, and questionnaires to gather the opinions of the experts. Data analysis was done by using importance-performance analysis to determine the scale of interests of which business model elements need to be changed. The results showed that there are three elements of the business model canvas (Key Activities, Key Partnerships, and Key Resources) that need to be improved.

Keywords

• business model canvas
• pairwaise comparison
• importance performance analysis