Industry-Wide Business Model Innovation - The Case of the Swedish Music Industry
Abstract: The significance of business model innovation in marketing and strategy is widely acknowledged in literature. Most research on this topic focuses on one focal firm, and the application of theory is rather abstract. Since entire industries are changing at a faster pace than ever due to the rise of new technologies, there is a need to understand business model innovation on an industry level.Thus, the purpose of this study is to investigate how industries can undergo a successful business model innovation, with a focus on the Swedish music industry. Furthermore, an analysis framework to derive key success factors will be developed to close the gap in literature. A qualitative case study was designed that shows Sweden's successful transformation from an unprofitable to a profitable overall industry business model. In total, 16 interviews with various industry experts were conducted.There is evidence that technology built the base for Sweden's success and that business model innovation was spurred through a positive interplay of network architecture, consumers and the market offering. Within these four areas, seven key success factors were identified, namely favorable market size, willingness to change, technological foundation, beta licenses, anticipative solution, emancipated consumers and fast-adopting consumers.
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